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Text size [+][-]  Monday February 8 2010GLOBAL EDITION

Considered view
05 May 2008 17:29

Vaporised

Context News

Microsoft called off its bid for Yahoo on May 3. Stock in the software group rose 3% in early trading, but subsided to close lower at $29.08 a share giving the company a market cap of $271bn. Microsoft’s market value was $303bn on January 31, the last day of trading prior to its offer for Yahoo.

Yahoo shares fell 15% to $24.37

 

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Investors briefly cheered the software giant’s abandoning Yahoo. Yet damage has been done. Microsoft is worth $30bn less than before it bid, reflecting concerns about its business model that were highlighted by the deal - and a fear it may try again.

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