EON

Stock In Internet Company Drops 16 Percent After Merger Failure

Cupertino, CA- It was not a question of if the stock price for a share of Yahoo Inc. stock would drop after hopes with a merger deal with Microsoft fell through but only how much would it drop?

That answer to that question: A Lot.

The price for a share of Yahoo Inc. fell early Monday after the proposed deal for a merger on the weekend with Microsoft fell through. The price in early Monday trading was $23.92 which is nearly 17 percent below the Friday closing price of $28.67 a share.

The next moves for the Internet Company may prove to be crucial in its long-term survival, and the CEO Jerry Yang of Yahoo now has the task to prove to shareholders that Yahoo is worth the $37 dollars a share that was Yang’s asking price for the Yahoo Company.

Insiders close to Yang are saying that the deal falling through with Microsoft is seen as a victory by Yang and his management staff, but privately some investors are saying that they would have favored a sale at a lesser $34 or $35 dollars a share.

The price for Yahoo stock before the first announcement of any interest by Microsoft on January 31st was $19.18 per share, which was close to a four year low for the Yahoo shares.

There are those in the market that believe that Yahoo may now turn toward Google for added business and interaction. There was recently a two-week test where Google delivered ads on some of the Yahoo web searches. Both companies described the test as being a success.