Right now the question on Yahoo shareholder minds is: How far will the company’s stock fall? Today Yahoo will be weighing its options after Microsoft’s decision to withdraw its offer to buy Yahoo for $33 a share, or approximately $47.5 billion, The New York Times reports, saying that much will depend on Yahoo’s next moves—which could include a partnership with its chief competitor, Google.
Technology and culture-wise, the Microhoo merger would likely have been a big mess. But Wall Street thought it was a strategic move, and virtually everyone had expected the merger to eventually go through.
“I don’t believe that Jerry Yang as a founder, as someone who is emotionally attached to the company, was really looking out for my interest as a shareholder,” said Darren Chervitz, co-manager of the Jacob Internet Fund, which owns about 150,000 shares of Yahoo, in the article. “I don’t think anything Yahoo puts out there is going to be comparable with what Microsoft was offering.”
While the entire board reportedly backed Mr. Yang’s desire to reject Microsoft’s offer, unhappiness with Mr. Yang could spread through the company’s ranks, according to the article. “If the stock drops as far as I think it will, a lot of employees are going to be angry and many key employees could leave,” said an anonymous Yahoo executive.
(Image credit: Marcio Jose Sanchez/Associated Press)