Microsoft this evening withdrew its bid for Yahoo. Yahoo was demanding approximately $37 per share while Microsoft was offering about $33 per share. Microsoft also stated that it won’t go hostile in an attempt to take over Yahoo. Expect Yahoo’s shares to drop on the open on Monday. Remember that prior to Microsoft’s attempt at the takeover, Yahoo was trading in the $18-20 range. As a result, a 20%+ drop in Yahoo’s share price on Monday isn’t much of a stretch. I’m expecting quite a few angry Yahoo shareholders coming forward as well.

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