OK, so the date has ended. Microsoft didn’t get to second base. Yahoo was jilted for being too high maintenance and their stock dropped 15% today. So, what now for Yahoo?
From Internet News:
“With Microsoft’s withdrawal, we’ll be better able to focus our energy on growing our industry leadership and maximizing value for stockholders,” Yang said.
The problem that Yahoo (NASDAQ:YHOO) now faces is the same one it’s had since Microsoft first announced its bid, only two dollars worse: How to find an alternative to selling outright that will bring equivalent value to the $33 per share price Microsoft had offered before talks broke down over the weekend.
Yahoo has already been the target of at least seven shareholder lawsuits charging that its board breached its fiduciary duty to investors in its response to the initial bid. Now that it has walked away from a higher bid, and its stock fell 15 percent to close at $24.37 today, more shareholders will likely bring a new wave of lawsuits, according to IDC analyst Karsten Weide.
Read on.