How the 'no deal' went down for Microsoft-Yahoo

SAN FRANCISCO -- For three months, Microsoft chased Yahoo in an escalating game of corporate cat-and-mouse.

Yet in one day, it all came to an abrupt end after a civil discussion between executives of both companies.

A rush of last-minute talks between heads of the companies preceded Microsoft's announcement late Saturday to withdraw its bid to buy Yahoo, say people familiar with the negotiations who are not authorized to speak publicly about them.

In the last meeting during a frenetic week, Yahoo co-founders Jerry Yang and David Filo flew to Seattle to face Microsoft CEO Steve Ballmer and Kevin Johnson, president of Microsoft's platform and services division, on Saturday morning.

Microsoft, which had indicated the previous night that it would raise its offer to $33 a share from $31, did so. Yang and Filo said their board wanted $37. The result: No deal.

The decision ...