Over the past few weeks the Microsoft bid to buyout online advertising rival Yahoo has seen raised rhetoric.
Thus far, Yahoo has been unwilling to accept Microsoft’s offer, claiming that it undervalues the firm and its potential future earning power.
Now Microsoft’s CEO has said he will walk away from the deal and offer a lower number directly to Yahoo shareholders.
“Hopefully that works. But if it doesn’t, we go forward,” Chief Executive of Microsoft Steve Ballmer said. “Time is money. We made (that) clear in the last letter we sent.”
Analysts, however, think Microsoft will not walk away from a merger with Yahoo.
“It is unlikely Microsoft will walk away, as the company has a strategic imperative to establish a more significant presence in Internet advertising,” Marianne Wolk, analyst with Susquehanna Financial Group, wrote in a report on Wednesday.
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