The move leaves Yahoo Chief Executive Officer Jerry Yang to prove he can revive sales and the share price by keeping the company independent. Sunnyvale, California-based Yahoo, owner of the No. 2 search engine, fell 32 per cent on the Nasdaq in the year before Microsoft’s offer. Bigger rival Google expanded revenue more than three times faster than Yahoo last quarter.
“Yahoo’s stock is going to crater, and Yahoo shareholders are going to go bang on everyone’s head and say, ‘How does this benefit me?”’ said Richard Williams, an analyst in Short Hills, New Jersey, at Cross Research who advises investors to hold on to Microsoft shares and doesn’t own any.