Yext Stock Plummets After CEO Withdraws Buyout Offer

Yext Stock Drops 13% on Canceled CEO Buyout

Shares of Yext (NYSE:YEXT) declined sharply by 13% on Monday after Chief Executive Officer Michael Walrath retracted his non-binding proposal to acquire all outstanding shares of the company he did not already own. The proposed price was $9.00 per share in cash.

Acquisition Financing and Future Leadership

Mr. Walrath informed the Board of Directors that he was unable to secure the necessary financing to complete the acquisition at the proposed price. Despite the withdrawal of the offer, he affirmed his commitment to continue leading Yext as its CEO, stating he is "very bullish on the future of the Yext business."

Company Response and Market Strategy

In response, Yext announced its intention to initiate a $150 million stock repurchase program via a "Dutch auction" self-tender offer. This repurchase is scheduled to begin in February 2026, with the company noting it may use debt financing to fund the offer. The plan was recommended by a Special Committee of independent directors.

Summary

The withdrawal of the CEO's acquisition offer due to financing issues has led to a significant drop in Yext's stock price. The company is now pivoting to a substantial stock repurchase plan to return capital to shareholders while the CEO maintains his leadership role and expresses confidence in the company's strategy.

FAQ

Q: Why did Yext stock fall significantly?

A: The stock price dropped after CEO Michael Walrath withdrew his proposal to acquire the company, citing an inability to secure financing.

Q: What is Yext's response to the canceled acquisition?

A: Yext plans to launch a $150 million stock repurchase through a "Dutch auction" self-tender offer, expected to commence in February 2026.

Source: Investing.com