Yang : Microsoft walked away
Jerry Yang, chief executive officer of Yahoo!, said it was Microsoft who walked away from a deal between the two, it has been reported.
He told delegates at the All Things Digital conference, there was not a single defining reason the firms failed to agree.
"I understand the situation people are feeling, but at the same time we did not walk away from that proposal, Microsoft did," he said.
The deal faltered after Bill Gates’ firm failed to achieve a price of $33 (£16) a share, while Mr Yang had said the company would accept $37 (£18) per share.
A merger between the two would have created a competitor to search company, Google. Microsoft is keen to increase its search advertising revenue and is currently pushing its live.com service.
Yahoo! president, Sue Becker, told delegates the company had made mistakes: "We were really close in those early years to the users, over time we started organising around the products."
The company is still in crisis talks, however, Yang remains confident he is the right man for the firm’s top job. "I do think I am the best person to lead Yahoo!," he said.
