Yahoo shares plummet on dead merger talks
Posted
Jun 12 2008, 04:04 PM
by
Kim Peterson
Some of that stampeding sound on the Street today came from Yahoo investors running for the exits. Shares of the company are down 11% on huge volume to $23.37 after the company said all merger talks with Microsoft are dead. Microsoft had zero interest in renewing any talks, according to a Yahoo statement. Microsoft shares are up 4% today to $28.29.
Yahoo and Google are reportedly set to announce some sort of partnership this afternoon. Stay tuned.
Update: Yahoo hired Google in a nonexclusive deal to sell some online ads in the U.S. and Canada. In an effort to appease angry investors, Yahoo says the deal will generate from $250 million to $450 million in incremental operating cash flow in the first 12 months.
Related reading:
Yahoo's $6B in legal exposure
Yahoo's good, but not spectacular, quarter
Microsoft's bid for Yahoo
Why Microsoft should mull Baidu buyout
Disclosures: I don't own shares of any companies mentioned in this post. And while Microsoft owns this blog, Microsoft does not control, censor or otherwise have any editorial influence over what I write.