Microsoft has issued a press release on Saturday indicating it was walking away from the deal

“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”

It seems that Yahoo! wants $37 per share instead of $33 per share ($50 billion) as offered by Microsoft. Greedy little corporate mongers are we.

Microsoft also added a hostile takeover, was not worth it as Yahoo! would take steps to make them “undesirable as an acquisition for Microsoft”

There are talks now, after this failed acquisition, there might be a possible merger between Yahoo! and AOL instead