Microsoft told Yahoo today that it is not interested in a takeover of the company, and only interested in making a search engine deal with the company. The decision came from Steve Ballmer, the CEO of Microsoft.
The announcement made Yahoo's stocks plummet to $9.14 a share, from $11.57. Steve Ballmer told Yahoo that it was only interested in a search engine only deal, and would not be interested in a takeover of the company. The original offering of $33 a share to purchase Yahoo was turned down by Jerry Yang, back in early May.
The renegotiation's of Microsoft to acquire Yahoo came about after the announcement that Jerry Yang, the former CEO of Yahoo stepped down. "We are done with all acquisition discussions with Yahoo" Steve Ballmer told the press during a question and answer session at Microsoft's annual shareholders meeting.
However, after talks about not acquiring Yahoo, Microsoft offered to have a search engine only deal, where Microsoft would remove the Yahoo search engine, and replace it with its own, Live Search.