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Microsoft had raised its bid to $33 per share but Yahoo wanted anything between $35-$37 per share. And Microsoft was not willing to pay more than $33 per share. Besides that they did not find it sensible enough to take the deal directly to the share holders. Therefore, finally Microsoft walked away. After the deal was closed Steve Ballmer sent an e-mail to all his employees which is as follows:
According to the latest report although Yahoo search engine users have declined but when it comes to web search ad market it has started gaining more than Google. A research by the Marketing firm SearchIgnite shows Yahoo out pacing Google in spending on search advertising, ad viewer ship and click-through rates during the first quarter. Besides that recently it has also tweaked its search engine technology.
Hotwise an online competitive intelligence service announced in its report that Google search attained a new high while Microsoft and Yahoo! Search attained new lows. According to March 2008 statistics for the search engine in USA, Google received 67.25% of the entire US search. While Yahoo search received 20.29%, MSN search received 5.25% and ASK.com search received 4.09%.