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Yahoo shares plummet on dead merger talks

Posted Jun 12 2008, 04:04 PM by Kim Peterson
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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.

Comments

 

    Bill gates!. Hes all about him self!. Gates bought the idea years ago

    from the inventor who invented this whole computor world to start

    with!but gates got all the credit for it! as he does with everything

    ealse he does not invent! nor will he ever because hes juist not as

    smart as people think that he is. Trust me I know some of the people

    who have been around him for years!. So yahoo does not need him

    and so its a blessing that it all fell threw!.

    MLA

Bad Move from Yahoo... their only hope was Microsoft

WHAT??? When was the last time you typed 'live.com' for a search? ... NEVER! Yahoo has a way better chance of getting searched than live.com. Msn is the one in trouble. Not financially of course but they have no popularity whatsoever.

Bill keep up the good work kick ass and take names.

THEY still have AT&T to salvage them

-- fyi, that guy who invented Dos, he had a chance to be the richest man in the world,  as GATES sent IBM to him -- but instead of being at the meeting he chose to instead go fishing (or was it flying) - and had his wife and attorney at the meeting instead..  

They blew the meeting.. he blew his chance..

IBM went BACK to Gates who had some friends  change a couple items in the dos system and so microsoft.

It is interesting how that story gets so pulled out of shape..

Hmm, you snooze you lose, seems that yahoo was asleep at the wheel too

well the Yahoo stocks may have fallen but i dont think that is the worst of it, every company has had it's down fall on the Market, I dont own any stock in either Of Company and i feel that Yahoo will be back up shortly, i Totally disagree with the guy above Yahoo does NOT need Mircosoft!, why would you want someone like bill gates in your company anyways? Because he is rich? Nonsence Money does not replace brains! anybody can buy a Ideal and get rich off of it, Bill Gates and Donald Trump should get togather and go bowling sometime, They both have no brains and deep pockets, they take advantage of Other People's Ideals and Money! Good for Yahoo Nice to see there are somethings that Bill Gates cant Buy!

MLA  What are you talking about, Bill Gates is no longer running Microsoft, catch up to the times dude, and learn how to spell.

"Bill gates!. Hes all about him self!"

this is quite possible the stupidest thing i've heard in a long time. consider the following:

1.) Bill Gates is one of the biggest philanthropists in human history

2.) Bill Gates hasn't been running Microsoft for at least five years. Ballmer has been running the company since he became CEO...

learn what you're talking about first.

Yahoo is on a slide down, down, down.

Eh... if you don't like Microsoft go Unix flavor... you just gonna love typing in the vi editor which is from the Jurasic aeon and also x-Windows that look like an Apple Mac UI from the 70s.  Bill Gates Rules!!!!! "Literally"

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