Shares of Yext (NYSE:YEXT) sank about 13% on Monday after Chief Executive Officer Michael Walrath withdrew his earlier, non-binding proposal to buy the remaining shares of the company he does not already own for $9.00 per share in cash.
Walrath told Yext’s board that he was unable to line up financing at the proposed valuation. Even so, he reiterated his intention to stay on as CEO and continue leading the business.
Following the withdrawal, Yext announced plans to return capital to shareholders via a $150 million share repurchase using a “Dutch auction” self-tender offer. The buyback is expected to launch in February 2026, with the final price range to be set closer to the start date based on market conditions. The company noted it may use debt to help fund the tender.
“I am very bullish on the future of the Yext business as AI continues to re-write the rules of Brand Visibility and discovery. I also believe in our global team and am excited to continue to lead the Company as it executes its strategy,” Walrath said.
The tender offer will be subject to several conditions, including securing financing, before it can be completed. Yext said it will release additional details once the process formally begins.
A special committee of independent directors—set up in August 2025 to assess Walrath’s proposal and other strategic options—ultimately endorsed the share repurchase plan after reviewing alternatives for returning value to shareholders.