Innovation

Microsoft walks away from its $44.6 billion bid for Yahoo

Microsoft has reportedly decided to walk away from its highly-publicized $44.6 billion acquisition bid for Yahoo. Negotiation talks broke down and Microsoft decided that the effort of a hostile takeover would not be worth the potential value of integrating Yahoo's online assets with its own.

Microsoft has decided to walk away from its $44.6 billion acquisition bid for Yahoo. Negotiations broke down and the Redmond, Washington software giant decided that a hostile takeover — and a subsequent nightmare integration of the two companies — would not be worth the potential value of integrating Yahoo's online assets with its own in order to mount a battle against Google for Internet supremacy.

Over the past month, it became clear that Yahoo's leadership did not want to join with Microsoft, as they explored deals with Google, AOL, News Corp, and any one else who would listen, in an effort to repel Microsoft. Because of that, I think it's ultimately a good thing that this two-month courtship is finally over. It's better for both companies. This would have been a bad relationship. Both of them are better off trying to clean up their respective online businesses. Microsoft can focus on online apps and Yahoo can focus on online content.

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Jason Hiner is Global Editor in Chief of TechRepublic and Global Long Form Editor of ZDNet. He writes about how technology is changing the way we live and work in the 21st century. He's co-author of the book, Follow the Geeks.

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