July 30, 2014
Investors are trashing Yahoo shares, sending them down 19.7 percent in early trading.
Hopes for the once-dominant search engine are dimming, after Microsoft's withdrawal of a nearly $44 billion takeover bid over the weekend. The two companies failed to agree on a price.
Yahoo Inc. Chief Executive Jerry Yang believes Microsoft Corp.'s sweetened bid of $33 per share was still too low. Microsoft would not meet his demand for $37 per share.
Analysts believe Yahoo's stock price will surrender most, perhaps all, of its 50 percent gain since Microsoft made its initial offer on January 31st.
In the opening minutes of trading Monday, shares were down $5.64 at $23.03. Shares closed at $28.67 Friday, when investors were hopeful about a deal.