SAN FRANCISCO (AP) -- Investors are expected to react Monday to Microsoft's withdrawal of a $47.5 takeover bid for Internet search pioneer, Yahoo, Inc.
Microsoft pulled its offer Saturday due to resistance from Yahoo Chief Executive Jerry Yang and the rest of Yahoo's board, who insisted the company was worth more.
Yahoo's stock price had climbed nearly 50 percent since Microsoft's initial offer. Many analysts believe Yahoo shares will surrender most, if not all, of that gain.
For Microsoft, abandoning the bid means it must find a new way to topple online search and advertising leader Google.
According to someone familiar with the negotiations, the talks reached a breaking point after Yahoo co-founders Jerry Yang and David Filo flew to Seattle Saturday morning to meet personally with Microsoft Chief Executive Steve Ballmer.
The person was not authorized to speak publicly and asked not to be identified.
Ballmer said Microsoft had been willing to pay $47.5 billion, or $33 per share, up from the bid's current value of $29.40 per share. Ballmer said Yahoo's board demanded at least $53 billion, or $37 per share.
KCBS Reports
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