After Microsoft announced its intention of buying Yahoo and after more than 3 months of negotiations, the buying company withdrew the offer formally made to Yahoo.

In the letter to Yahoo, Mr Steven Ballmer announced Microsoft's decision after the negotiations.

Mr Ballmer declared that Microsoft raised the initial offer of 44.6 billion dollars with about 5 billion dollars, but wouldn't met the demands of Yahoo, which insisted to be payed at least 53 billion dollars.
Furthermore, Microsoft is unpleased with Yahoo's intention to close a deal with Google, which conflicts with Microsoft's plan for Yahoo and which lead to a demise of interest in closing the deal.

Yahoo response was that Microsoft's bid was not enough to buy the company, and chairman Roy Bostock actually referred to Microsoft's offer as a "distraction".