Yahoo shares drop after Microsoft abandons bid

By on May 5, 2008, 6:00 PM
Now that Microsoft has withdrawn its $46 billion offer to acquire Yahoo, the inevitable has happened: the struggling internet company’s shares took a hammering on Monday trading, ending the day down 15 percent at $24.37 a share – far below the $33 per-share Microsoft offered.

Though the failure of Microsoft’s bid was clearly a disappointment to a number of stock owners, Yahoo’s Jerry Yang is touting this as an opportunity to focus all of their efforts on executing “the most important transition” in their history – likely referring a Google ad outsourcing deal. It will probably take a lot more than that, however, to convince investors that Microsoft wasn't Yahoo's best option. Meanwhile, Google’s stock price climbed more than two percent in a sign investors feel the Microsoft setback is a good thing for the search giant.

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