Yext Shares Plummet 23.60% After CEO Withdraws $9-Per-Share Buyout Proposal

On February 3, 2026, Yext (NYSE: YEXT) shares plummeted 23.6034% in pre-market trading, marking a sharp reversal following the CEO’s withdrawal of a $9-per-share buyout proposal. Michael Walrath, CEO and chairman, cited an inability to secure financing at the proposed price, though he reaffirmed his commitment to leading the company. The move comes after a special committee of independent directors evaluated strategic alternatives to enhance shareholder value.

In response to the abandoned acquisition attempt, Yext announced a $150 million self-tender offer, structured as a “Dutch auction,” to repurchase common stock. The tender, expected to launch in February 2026, will depend on market conditions and may involve debt financing. The board emphasized confidence in Walrath’s leadership and the company’s long-term strategy, particularly in AI-driven brand visibility solutions.

Walrath highlighted optimism about Yext’s future, noting AI’s transformative potential in digital discovery. Despite the abrupt termination of the buyout, the self-tender underscores management’s focus on capital efficiency. However, the tender remains subject to financing and regulatory conditions, with further details to follow in SEC filings.