Yahoo shareholders took the news badly, pushing the company's shares down more than 10% by the end of trading. The offer had boosted the stock by nearly 60% over its value at the time Microsoft had originally announced its bid on Feb. 1. Shares of Yahoo closed trading down $2.63 at $23.52 on Thursday.Yahoo's stock closed 10.13% lower today.
Shares of Microsoft took the opposite track, rising over 4% to close at $28.24. "We've always thought this deal was a bad idea to begin with," said McAdams Wright Ragen analyst Sid Parakh, who covers Microsoft.
In a statement, Yahoo said that it has held "numerous meetings and conversations with Microsoft regarding a number of transaction alternatives." At a June 8 meeting that included several board members of Yahoo, the company said Microsoft made clear that it was not interested in a full buyout.
In addition, Yahoo said its board determined that an alternative transaction, such as a sale only of its search business to Microsoft, would not be in its best interests.
Yahoo stops all talks with Microsoft
Posted on Friday, Jun 13 2008 @ 01:41 CEST by Thomas De Maesschalck