What now for Yahoo as Microsoft pulls plug

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What now for Yahoo as Microsoft pulls plug

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Yahoo shares plunged almost twenty percent after software giant Microsoft walked away from a deal for the internet company.

The bid fell apart over the weekend with both sides failing to agree on an acceptable price.

Yahoo faces growing pressure to find an alternative strategy to Microsoft’s thirty Billion Euro offer.

Google shares rose after speculation that Yahoo might push for an partnership.

Yahoo has also held talks with Time Warner’s AOL and Rupert Murdoch’s News Corp. However, it is thought talks with News Corp have cooled in recent weeks.

A relaunch by Mircosoft could still be on the cards, but leading Frankfurt broker Stefan Scharffetter thinks it unlikely.

‘‘I don’t think Microsoft will consider making another offer for Yahoo. Maybe someone else from the market will take over Yahoo, but I dont’ think Microsoft will, because we’ve heard their pride has been so damaged over the weekend.’‘

Microsoft wanted to buy Yahoo to compete with Google in the lucrative web advertising market.

Some Yahoo shareholders say they will challenge the company’s board over the collapse of talks.