Microsoft gives up

http://biz.yahoo.com/rb/080503/microsoft_yahoo.html


Reuters
Microsoft withdraws offer for Yahoo: source
Saturday May 3, 8:06 pm ET

SAN FRANCISCO (Reuters) - Microsoft Corp (NasdaqGS:MSFT - News) has withdrawn its offer for Yahoo Inc (NasdaqGS:YHOO - News) and does not plan to go hostile, a person familiar with Microsoft's thinking said on Saturday.
Microsoft raised its offer by $5 billion to $33 a share, but Yahoo wanted $37 a share, this person said.

Microsoft Chief Executive Steve Ballmer has sent a letter to Yahoo Chief Executive Jerry Yang withdrawing the offer, the person said.

(Editing by Todd Eastham)