Microsoft chief executive Steve Ballmer has quashed renewed Yahoo stakeholder hopes of a buyout, sending the beleaguered internet firm's share into another dive.
Yahoo shares ended more than 20% lower in Wednesday trade to end at a five-year low of $9.14, reports BBC news.
Shares had rallied to gain around 8.7% on Tuesday after Yahoo announced plans to replace Jerry Yang as chief executive.
Yang was sharply criticised by many stakeholders after he rejected a Microsoft buyout offer at $33 a share in February.
Yahoo's value has dropped more than $30bn since then.
News of Yang's leaving the post of CEO raised hopes Yahoo could still strike a deal with Microsoft, but Ballmer dismissed the possibility at Microsoft's annual general meeting yesterday.
"We are done with all acquisition discussions with Yahoo. We did our best. We have moved on," Ballmer said.
However, he said Yahoo's search business was still of interest and Microsoft was open to discussions on that front.