What’s Next For Microsoft and Yahoo?

Shares of Yahoo! Inc. (YHOO) tumbled 15% yesterday (Monday) to close at $24.37 a share as investors responded to Saturday’s news that Microsoft Corp. (MSFT) would drop its $47.5 billion dollar bid for the beleaguered search engine firm. But the tough times are just beginning for Yahoo, which must now prove why it is worth more than the lofty price Microsoft was offering. “Yahoo is going to be under a lot of pressure,” Peter Falvey, managing director at technology-merger adviser Revolution Partners, told Bloomberg News . “A lot of shareholders are going to say, ‘Hmm, maybe we overreached.’” Microsoft originally offered $31 per… SHARETHIS.addEntry({ title: "What’s Next For Microsoft and Yahoo?", url: "http://jutiagroup.com/2008/05/06/what%e2%80%99s-next-for-microsoft-and-yahoo/" });