By RIA Novosti,
New York : Yahoo’s stock plummeted on Monday after Microsoft withdrew its $47.5 billion takeover offer.
The software corporation’s abandoned its takeover efforts on Saturday, after offering the Internet search provider $33 per share, or 70% above Yahoo’s market price, while the Web search and media group insisted on $37 a share or $53 billion for the deal.
Yahoo’s shares fell 15% or $4.30 to close at $24.37 on Monday. However, the Web search provider’s stock price stayed well above the $19.18 level before Microsoft made its initial bid on January 31 as Wall Street players expected that Microsoft could return to the negotiation table at a later date or Yahoo could strike other strategic deals.
Meanwhile, Yahoo Inc. Chief Executive Jerry Yang had to deal with some big shareholders who were displeased that he had failed to reach a deal to sell the web search company to Microsoft, Western media reported on Tuesday.
“I’m extremely disappointed in Yang. I think he overplayed a weak hand… It’s evident that most shareholders would have been perfectly happy with a transaction in the $34 range,” Gordon Crawford, a portfolio manager at Capital Research Global Investors, which owns over 6% of Yahoo’s shares, was quoted by The Wall Street Journal as saying.