paidContent - Yahoo Stock Drops Big

This story was written by Joseph Tartakoff.
Apparently, the market is not so thrilled about the terms of the Microsoft-Yahoo (NSDQ: YHOO) deal announced this morning. Yahoo’s stock is down more than 10 percent as of 11:30 a.m. ET, erasing all of its gains since reports that a deal was imminent first surfaced on July 16 (Click on Google (NSDQ: GOOG) Finance chart to the left). Microsoft’s stock, meanwhile, is up a tad. Possibly driving the drop: There’s no upfront payment—which was incorporated into many analysts’ models about how a deal would impact Yahoo’s share price. Yahoo is saying however that its operating income will increase by about $500 million. But that will only happen two years following regulatory approval, according to the companies. And Yahoo and Microsoft (NSDQ: MSFT) expect to get the green light—at the very earliest—next year


By Joseph Tartakoff