
Yahoo shares fell more than 16 percent today as hopes for the once-dominant Internet icon dimmed following Microsoft’s withdrawal of a $47.5 billion takeover bid.
The sell-off wiped out nearly half the gain in Yahoo Inc.’s stock price since Microsoft made its initial offer on Jan. 31 in an effort to challenge online advertising and search leader Google. The downturn left Yahoo’s market value about $14 billion below Microsoft’s last offer.
Last-ditch talks between Yahoo and Microsoft were fruitless, leading Microsoft to walk away from a deal Saturday.
In late-morning trading Monday, Yahoo shares shed $4.69, or 16.4 percent, to $23.98, below Friday’s close of $28.67, when investors were still hopeful about a deal.
Despite the backlash, analysts doubt Yahoo shares will fall back to their $19.18 pre-bid price, partly because some investors may still be holding out hope that the software maker will renew its takeover attempt if Yahoo continues to struggle.
Microsoft shares rose nearly 2 percent, or 57 cents, to $29.81. The shares had declined 10 percent to $29.24 since the bid, reflecting concerns that the proposed marriage would turn into a complicated mess that would enable Google to grow even stronger. Now what’s next?
Let;s wait and see.






