Yahoo ends all Talks with Microsoft, Shares Plummet

June 12, 2008 12:38:02 PM PDT
Yahoo says it has ended all talks about any kind of business deal with Microsoft, burying lingering hopes that Microsoft might revive its attempt to buy the Internet pioneer. The development, announced Thursday, is expected to lead to an advertising partnership between Yahoo and another rival, Internet search leader Google. That alliance is expected to be announced after the stock market closes.

Yahoo shares plunged more than 13 percent on the news.

Microsoft told Yahoo "unequivocally" that it has no interest in renewing a takeover attempt, even at its last offer of $47.5 billion, or $33 per share, according to a Yahoo statement.

Yahoo had sought $37 per share, causing Microsoft to abandon the bid May 3.