UPDATE, 11:09 p.m.: According to this Associated Press story, Henry e-mailed the AP and said contract talks are "no closer." So does this mean they are out? Not necessarily by what the AP reported.
According to Adam Kilgore from the Globe, John Henry, in an e-mail statement, said the Sox "are not going to be a factor" for Mark Teixeira.
Red Sox owner just e-mailed several media members with a stunning twist in the team's pursuit of Mark Teixeira. "We met with Mr. Teixeira and were very much impressed with him. After hearing about his other offers, however, it seems clear that we are not going to be a factor."
I have no idea how this could possibly happen. Why would the Red Sox front office take the time and effort to fly out to Texas to just, minutes after the meeting, give up? It doesn't make a lot of sense to me. Maybe they realized Scott Boras was/is trying to push teams around. Maybe the Sox are trying to make a statement. Hopefully we'll find out more soon.