Yahoo's Stock Plunges After Microsoft Says No Buyout
Microsoft is no longer interested in buying all of Yahoo, CEO Steve Ballmer said Wednesday, though he told shareholders that the company would still be "very open" to a collaboration on Internet search. His comments sent Yahoo shares diving by 12 percent.
"Let me be clear," Ballmer said at Microsoft's annual shareholder meeting. "We are done with all acquisition discussions with Yahoo."
Yahoo spurned a $47.5 billion takeover offer from Microsoft in May, and later rejected Microsoft's bid to buy only its search engine. Ballmer has said repeatedly of late that the buyout remains off the table, though a search-related deal is possible.
But Wednesday marked the first time he had renewed that stance since the resignation announced this week by Yahoo co-founder Jerry Yang, who had resisted Microsoft's overtures. (See Scott Wapner's report on Ballmer's Yahoo comments, left.)
Yahoo shares rose when Yang said he was stepping down as Yahoo's CEO, because investors hoped it meant a deal with Microsoft would now be more likely.
Ballmer said the companies are not currently talking about a search deal.
Yahoo shares were down more than 12 percent to near $10, well below the $33 per share that Microsoft offered in May. Microsoft shares tumbled almost 4 percent.
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