"With the distraction of Microsoft's unsolicited proposal now behind us, we will be able to focus all of our energies on executing the most important transition in our history so that we can maximise our potential to the benefit of our shareholders, employees, partners, and users," Yahoo CEO Jerry Yang said in a statement.

Yahoo said that Microsoft was just not willing to pay enough for the internet company to make the deal worthwhile.

"From the beginning of this process, our independent board and our management have been steadfast in our belief that Microsoft's offer undervalued the company and we are pleased that so many of our shareholders joined us in expressing that view," Yahoo Chairman Roy Bostock said in a statement.

Microsoft withdrew its offer after on Saturday, following a flurry of negotiations on Friday that saw the software maker increasing its USD 31 per share cash and stock offer to USD 33.00 per share, adding approximately USD 5 billion to the original offer made in February.

Although, the upped offer represented 70 per cent premium on Yahoo's closing share price on the night Microsoft made its unsolicited offer, it was still too low for Yahoo, which according to Microsoft CEO Steve Ballmer, insisted on at least USD 37 per share.

In his statement, Bostock indicated that Yahoo would do well on its own and pursue strategic opportunities that position Yahoo for success and leadership in its markets.

Source: By DDNEWS