Gates: Microsoft to Go It Alone

TSC Staff

05/07/08 - 04:24 PM EDT
Updated from 12:45

Microsoft (MSFT Quote - Cramer on MSFT - Stock Picks) is planning to pursue a standalone strategy now that its bid to acquire Yahoo! (YHOO Quote - Cramer on YHOO - Stock Picks) has fallen apart, Chairman Bill Gates said at a press conference in Tokyo.

Steve Ballmer, the CEO of Microsoft, made similar remarks recently concerning the withdrawn offer, which was worth more than $40 billion. Some analysts believe Microsoft could return with a new acquisition attempt, but the remarks of Gates and Ballmer indicate that such a move isn't imminent.

Microsoft originally said it would pay $31 a share for Yahoo!, then sweetened the offer by $2. However, Yahoo! still wanted more, and Microsoft decided to end the takeover effort, which it had proposed in order to better compete with the Internet dominance of Google (GOOG Quote - Cramer on GOOG - Stock Picks).

"We put a lot of effort in talking with Yahoo! and the conclusion was reached that we should pursue our independent paths," Gates said at the press conference, according to a Bloomberg report.

Shares of Microsoft ended Wednesday down 1.7% at $29.21, and Yahoo! finished down 0% at $25.64. Google closed down 1.3% at $579.

Elsewhere among widely held technology stocks, Apple (AAPL Quote - Cramer on AAPL - Stock Picks) ended down 2.2%, Intel (INTC Quote - Cramer on INTC - Stock Picks) eased 1.7%, and IBM (IBM Quote - Cramer on IBM - Stock Picks) ended 1.5% higher.