Microsoft Backs Off Bid To Buy Yahoo

Microsoft says it's dropping its three-month-old bid to buy Yahoo because the two sides can't agree on an acceptable sale price.

Microsoft Chief Executive Steve Ballmer says in a letter sent to Yahoo on Saturday that the software maker was willing to pay $47.5 billion for Yahoo. That's $33 per share.

Ballmer says Yahoo insisted that Microsoft pay at least $53 billion. That's $37 per share.

Microsoft's original offer was $44.6 billion, or $31 per share.