The Yahoo/Microsoft saga may not be over yet: after Microsoft walked away from the negotiating table on Saturday, Yahoo's shares took a dive in yesterday's trading, prompting CEO Jerry Yang to tone down his anti-Microsoft stance with some conciliatory gestures.
Microsoft initially offered $31.00 per share for Yahoo, which was then trading at $19.18 – Yahoo's board rejected the offer. Last weekend, Microsoft raised its bid to $33.00, but Yahoo held out for $37.00, at which point Microsoft withdrew.
Yesterday Yahoo's shares dropped 15%, or $4.30, indicating that shareholders are unhappy about the Microsoft deal falling through.
Yang's initial reaction to the failed negotiations was relief that the episode was past, but by yesterday evening he was in a more conciliatory mood, indicating that he'd be happy to resume talks if Microsoft wanted to.
Some analysts believe the Yahoo share price was saved from falling further by hopes that Microsoft will make a new offer.