San francisco (AP) - Microsoft Corp. withdrew its $42.3 billion bid to buy Yahoo Inc., scrapping an attempt to snap up the Internet icon in hopes of toppling online search and advertising leader Googld Inc.
  The decision to walk away from deal came Saturday after last-ditch efforts to negotiate a mutually acceptable sale price proved unsuccessful.
  The talks reached a breaking point after Jerry Yang and David Filo, the co-founders of Sunnyvale, Calif-based Yahoo, flew to Seattle in the morning to meet personally with MS Chief Executive Officer Steve Ballmer and kevin Johnson, who runs the software maker's unprofitable online services division, according to someone familliar with the talks. The person was not authorized to speak publicly and asked not to beidentified.
  "Clearly a deal is not to be," Ballmer wrote to Yang in a letter late Saturday. 
  MS was willing to pay $47.5 billion, or $33 per share, up from the bid's current value of $29.40 per share, according to Ballermer's letter.
  But Yahoo's board demanded at least $53 billion, or $37 per share, according to Ballmer. That would have been nearly double Yahoo's stock price of $19.18 at the time MS first made its bid a little over three months ago.
  And Yang, who became Yahoo's CEO 11 months ago, wanted $38 per share in a Wednesday meeting, according to the person familliar with the discussions. That meeting was held the day after Yang and Yahoo Chairman Roy Bostock called to ask MS not to withdraw its bid, the person said.
  In a statement Saturday, Bostock reiterated that MS had undervalued his company's assets since the takeover tug-of war begin more than 3 months ago.
  "We remain focused on maximizing shareholder value and pursuing strategic opportunities that position Yahoo for success and leadership in its markets," Bostock said.

NEW WORK(Reuters) - Yahoo Inc. is still holding talks with others potential parteners after MS Corp. withdraws irs unsolicited bid for the company Satuday, a source familiar with the matter said.
  Yahoo had been discussing a potential deal with TIme Warner Inc's AOL Internet division and testing a possible ad partnership to include Google Inc, search listings on its site.