Yext CEO Walrath Scraps $9/shr Acquisition Bid, Moves Forward with $150M Dutch Auction Tender

NFTragedy · 2026-02-18T14:12:42+00:00

Yext's CEO Michael Walrath has withdrawn his acquisition plan due to financing issues, reaffirming his role while the board approves a $150M Dutch auction for share repurchase. The stock fell 22% in response to the changed strategy.

NFTragedy

2026-02-18 14:12:42

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Yext Inc. (YEXT) announced this week that Chief Executive Officer and Chairman Michael Walrath has withdrawn his previously proposed acquisition plan to buy out all outstanding shares he doesn’t already own at $9 per share. The deal, which was set to commence in February 2026, proved impossible to finance at the proposed price point. Walrath conveyed to the board that he was unable to lock in the necessary capital at that valuation, marking a significant shift in his acquisition strategy.

CEO Reaffirms Leadership Amid Financing Challenges

Despite stepping back from his personal buyout initiative, Walrath has reaffirmed his commitment to remain as Yext’s Chief Executive Officer and lead the company forward. The board expressed continued confidence in his leadership capabilities, signaling stability despite the aborted acquisition attempt. The withdrawal reflects broader market conditions and financing constraints rather than any doubt about management direction or company performance.

Board Approves $150M Dutch Auction Self-Tender Alternative

Following Walrath’s withdrawal, Yext’s special committee of independent directors has greenlit a $150 million Dutch auction self-tender offer targeting the company’s common stock. This alternative buyback strategy allows the company to repurchase shares at competitively determined prices rather than at a fixed per-share rate. The Dutch auction mechanism gives shareholders flexibility in participating at various price levels.

Market Delivers Sharp Response to Failed Acquisition

The announcement triggered an immediate market reaction, with Yext shares declining 22.01% to $5.60 per share in pre-market trading on the New York Stock Exchange. The sharp sell-off reflects investor disappointment over the failed acquisition bid and underscores market uncertainty about alternative capital allocation strategies. The price movement signals the market’s preference for the original Walrath buyout proposal versus the newly approved Dutch auction tender offer at lower valuations.

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