Microsoft has announced that it will no longer pursue the acquisition of Yahoo after months of maneuvering and speculation. The company has withdrawn a bid to purchase the company at a price of $47 billion, or $33 dollars per share. While the development was reportedly considered a victory by Yahoo executives, angry investors did not take the news well, sending Yahoo shares down 20 percent.
While some investors accuse Yahoo CEO Jerry Yang of letting emotions cloud his judgment, the company co-founder claims that Yahoo is worth much more, and he plans to prove that. There are also new questions about how serious the Microsoft bid was to begin with. Regardless of the financial ramifications, the result means that Microsoft will likely now aggressively invest in efforts to strengthen is web presence. Meanwhile, Yahoo is expected to focus on making its online advertising network more profitable.