Shares in Yahoo fell almost 20 per cent in Frankfurt today after Microsoft Corp walked away from its bid for the internet company.
Yahoo shares were down 19.7 per cent in Frankfurt at €14.55 at 0820 GMT, while Microsoft rose 3.7 per cent.
Yahoo faces growing pressure to find an alternative strategy to Microsoft's takeover offer.
Microsoft dropped its bid after Yahoo rejected its offer to raise the price by $5 billion (€3.24 billion) to $47.5 billion (€30.7 billion).
Microsoft said it offered to raise its $42.6 billion bid by about $5 billion, to $33 a share.
Yahoo demanded $37, Microsoft said yesterday in a statement.
Yahoo is likely to push for an advertising partnership with internet search leader Google, sources familiar with the matter said yesterday.
A tie-up with Google, seen as a big winner from the end of Microsoft-Yahoo talks, should help boost Yahoo's operating performance in the near term.
Google shares rose 3.4 per cent in Frankfurt today.
