Yahoo stock drops 19%
Internet portal's stock tumbles sharply after Microsoft withdraws its $46 billion offer.
NEW YORK (Fortune) -- Yahoo Inc. shares fell 19% early Monday after Microsoft Corp. withdrew its $46 billion bid to purchase the tarnished Internet portal.
The sell-off comes two days after Microsoft Chief Executive Steve Ballmer said the two companies were unable to reach an agreement.
Microsoft announced a bid in late January to purchase the company in a nearly $45 billion offer. Yahoo demanded a higher price, saying the company was
"severely valued." The three-month saga ended Saturday with Yahoo refusing Microsoft's offer that increased the original offer to $33 a share from $31.