Yahoo CEO sure to have some explaining to do (AP)  (05-05-2008)

SAN FRANCISCO (AP) -- Microsoft formally withdrew its offer to buy Yahoo Inc.  Chief Executive Jerry Yang now has the chance to prove that his company is worth more than the offer made by Microsoft Corp.

The challenge is expected to be daunting for Yang, as investors have already began showing how little they think of Yahoo without a takeover bid on the table. Yahoo Inc. shares were already almost 20% down by 0820 GMT in Frankfurt, while Microsoft rose 3.7 percent.

Many analysts believe Yahoo's stock price, which had climbed nearly 50 percent since Microsoft's initial offer, will surrender most, if not all, of that gain, leaving the Sunnyvale-based company's market value around $30 billion.

Disillusioned shareholders are bound to question whether the rejection of Microsoft's sweetened $33-per-share offer was driven more by emotion and ego than sound business sense.

Source AP