On Saturday Microsoft withdrew its offer to buy Yahoo! turning down its proposal to raise the price by $5 billion to $47.5 billion.

According to Microsoft's CEO Steve Ballmer Microsoft offered $33 per share. Yahoo! however insisted on $37. More than three months ago Microsoft originally offered $31 a share for Yahoo!.

"We believe the economics demanded by Yahoo do not make sense for us, and it is in the best interests of Microsoft stockholders, employees and other stakeholders to withdraw our proposal," Ballmer said.

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