The “Yahoo Microsoft Deadlock” finally came to an end on Saturday when the Redmond, Washington based software giant, Microsoft decided to withdraw its takeover bid for Yahoo. Microsoft yesterday said that it was abandoning its blockbuster bid to acquire Yahoo after the two companies could not agree on a price.

According to the reports, the breakdown in the talks occurred in a meeting on Saturday morning in Seattle between Microsoft’s chief executive, Steven A. Ballmer, and Yahoo’s chief and co-founder, Jerry Yang. The meeting was also attended by Yahoo’s other co-founder, David Filo, and Kevin Johnson of Microsoft. Mr. Ballmer increased Microsoft’s offer to $33 a share, but Mr. Yang said Yahoo would not sell for less than $37 a share.

Microsoft’s decision to walk away ended the three-month-old impasse that began when Microsoft made an unsolicited offer to acquire Yahoo in an effort to compete more effectively with Google in Web search, advertising and services.