Yext CEO Scraps $9/shr Buyout Bid; Unveils Alternative $150M Tender Program

SelfCustodyIssues · 2026-02-17T23:07:09+00:00

Michael Walrath, CEO of Yext, has withdrawn his acquisition proposal of $9 per share due to financing challenges. Instead, the board approved a $150 million share repurchase via a Dutch auction set for February 2026, leading to a 22.01% drop in stock price.

SelfCustodyIssues

2026-02-17 23:07:09

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Michael Walrath, Chief Executive Officer and Chairman of Yext, Inc., has pulled back from his previously proposed acquisition of all outstanding shares at $9 per shr in cash. The company disclosed on Monday that Walrath disclosed this reversal after determining that securing financing at the stated price was not feasible under current market conditions. Despite the setback on the personal acquisition front, Walrath reaffirmed his commitment to lead the brand visibility platform going forward, with the board expressing continued confidence in his stewardship.

Strategic Pivot: New Share Repurchase Framework

In response to the withdrawn proposal, the board’s special committee of independent directors has green-lit a $150 million Dutch auction self-tender offer for Yext’s common stock. The new mechanism, distinct from the previous $9/shr cash acquisition plan, represents a different approach to returning value to shareholders. This self-tender program is scheduled to launch in February 2026 and may incorporate debt financing as part of its funding structure, according to company statements. The Dutch auction format allows shareholders to bid within a specified price range, with the company repurchasing shares at the lowest price that secures the full $150 million allocation.

Market Reaction and Stock Performance

The broader investment community responded swiftly to the announcement, with Yext’s share price declining sharply in pre-market trading. The stock dropped 22.01% to $5.60 on the New York Stock Exchange, reflecting investor sentiment regarding the change in capital allocation strategy. This price movement suggests market participants are digesting both the abandonment of the higher $9/shr proposal and the revised repurchase parameters under the Dutch auction structure. Analysts and shareholders will likely monitor how the February 2026 tender offer execution unfolds and whether the $150 million allocation proves sufficient to stabilize investor confidence in Yext’s strategic direction.

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