Yahoo stock falls around 19 percent: Shareholders unhappy, can it go lower

It’s only been a day since Microsoft Corp announced that it was withdrawing the proposal to acquire Yahoo! Inc, now today we see Yahoo’s Stock fall sharply, although this was expected. In the early trading today we could see Yahoo stock drop as much as 19 percent, but the current $23 is still more than it was before Microsoft made their bid on the 31st of January.

The $31-per-share offer from Microsoft was a good one and they may have gone much higher if Yahoo would of considered it, the real problem for Yahoo now is the shareholders. They are not happy and I am sure many Yahoo shareholders are wondering if this is the bottom yet.

We are also hearing that some “top Yahoo executives are also dismayed that the merger discussions collapsed over the weekend”, was it an ego thing to turn down Microsoft? Surely that would not be the case, as we are talking big numbers here.

The future is very uncertain for both Microsoft’s search business and Yahoo’s share prices, as without Yahoo, it looks impossible for Microsoft to take the number two spot in search. The bad news for Yahoo is it looks like there are hard roads ahead for the stock to get back to middle twenty dollars.

What’s your view on the Yahoo/Microsoft story?

Wired said, “Bill Miller, a behind-the-scenes player in Microsoft-Yahoo talks, may have had a hand in the collapse of the deal“. Read that story here.

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