Breaking: Microsoft Cancels Yahoo Proposal, Keeps the Ring

Broken HeartMicrosoft has called it quits on their 3 month infatuation with Yahoo, withdrawing their official proposal today by snail mail.

From the official press release, Microsoft CEO Steve Balmer states:

“Despite our best efforts, including raising our bid by roughly $5 billion, Yahoo! has not moved toward accepting our offer. After careful consideration, we believe the economics demanded by Yahoo! do not make sense for us, and it is in the best interests of Microsoft stockholders, employees and other stakeholders to withdraw our proposal”.

Wow. Now there’s a turn-up for the books. Yahoo’s advertising fling with Google last month must have really hurt for Balmer to abandon the pursuit. Kudos to Charlie for the heads up.

ADDED: Yahoo has officially responded to the rejection.

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