Icahn Mulls His Next Move

Microsoft has ended its pursuit of Yahoo, leaving Yahoo to form an advertising pack with rival Google, according to various reports. News of the Google deal apparently caused Yahoo’s shares to plunge 10 percent as investors abandoned hopes that Microsoft would renew its bid.

Microsoft believed that a deal with Yahoo would have been more valuable to Yahoo if it had purchased the entire company at $33-per-share, according to The Associated Press.

Shareholder activist Carl Icahn has yet to comment while he studies the situation and figures out his next move, according to The Wall Street Journal. The negotiations fell apart after the two companies held a private meeting in San Jose, Calif. At the meeting, Microsoft informed Yahoo that it no longer sought a larger deal.

Two days later, Yahoo’s board met and made the decision to organize a deal with Google. Microsoft found out about the deal yesterday from Yahoo CEO Jerry Yang.