According to the Associated Press, Microsoft has given up and is walking away from the deal to buy-out Yahoo. Check back for any developments.
UPDATED 5:20 PM PDT: C|Net has confirmed it is over between Microsoft & Yahoo:
In a letter to Yahoo’s CEO Jerry Yang, Microsoft chief Steve Ballmer confirmed that Microsoft was willing to offer $33 a share, but that Yahoo was holding out for at least $37 a share, or $5 billion more than Microsoft was prepared to spend. In the letter, Ballmer also says he is ruling out a direct offer to shareholders.
“After careful consideration, 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,” he said.