Yext CEO Michael Walrath Abandons $9-Per-Share Bid, Launches $150M Dutch Auction Instead

MidnightSeller · 2026-02-16T04:06:46+00:00

Yext's CEO Michael Walrath withdrew his $9 per share acquisition proposal due to financing issues but remains in charge. The board supports him, and a $150 million Dutch auction for share repurchase is planned. Initially, Yext's stock fell 22.01% following the announcement.

MidnightSeller

2026-02-16 04:06:46

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Yext, Inc., a leading brand visibility platform, took a pivotal turn this week when Chief Executive Officer and Chairman Michael Walrath stepped back from his previously announced acquisition proposal. The CEO had initially sought to purchase all outstanding shares not already under his control at $9 per share in cash, but financing constraints forced him to reconsider the plan. Unable to arrange the capital needed at the proposed valuation, Walrath pivoted to an alternative strategy that maintains investor confidence while keeping him at the helm.

Board Reaffirms Leadership as New Plan Emerges

Despite the buyout proposal withdrawal, Michael Walrath remains firmly positioned as the company’s leader, with the board reiterating its strong support for his continued stewardship. The company emphasized that Walrath has reiterated his commitment to guide Yext forward, signaling business continuity for shareholders. Rather than viewing the financing setback as a loss of direction, the board positioned it as a strategic recalibration that protects shareholder interests.

$150 Million Dutch Auction Unveiled as Path Forward

In place of the failed acquisition bid, a special committee of independent directors has green-lit a $150 million Dutch auction self-tender offer for Yext’s common stock. This mechanism allows the company to repurchase shares at market-driven prices, providing an alternative liquidity event. The tender is slated to begin in February 2026, with potential partial funding through debt arrangements. The Dutch auction approach offers flexibility while demonstrating management’s confidence in the company’s valuation.

Market Digests Announcement with Sharp Sell-Off

The stock market’s initial response was decidedly negative, with Yext shares plunging 22.01% in pre-market trading to $5.60 on the New York Stock Exchange. The sharp decline reflects investor concerns about the financing roadblock and uncertainty surrounding the new tender mechanism. Whether this repricing represents an opportunity or a sign of deeper market skepticism remains to be determined as the February tender process unfolds.

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