Microsoft letter withdrawing Yahoo bid

(Reuters) - Microsoft Corp (MSFT.O: Quote, Profile, Research, Stock Buzz) walked away from its bid to buy Yahoo Inc (YHOO.O: Quote, Profile, Research, Stock Buzz) on Saturday after the Internet company turned down its offer to raise the price by $5 billion to $47.5 billion.

Following is the letter from Microsoft CEO Steve Ballmer ending talks. It was released by Microsoft.

May 3, 2008

Mr. Jerry Yang

CEO and Chief Yahoo

Yahoo! Inc.

701 First Avenue

Sunnyvale, CA 94089

Dear Jerry: