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, the AP reported.
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.