By Nicholas G. Miller

Yext Chief Executive Michael Walrath withdrew his offer to buy the company for $9 a share, saying he wouldn't be able to obtain the necessary financing.

"Given the material degradation in the enterprise value of our public software peers since August and the uncertainty in the view of funding sources as to the impact AI will have on software companies, it became clear to me that securing acceptable committed funding for my bid would be effectively impossible," Walrath said in a letter to the company's employees.

The company said it would repurchase $150 million of its common stock beginning this month and could draw on debt financing to fund the buybacks.

Walrath will remain CEO of the company and said he remained confident in the company's business despite worries about the impact AI could have on demand for software.

"I am more confident today that the 'software is dead' thesis driving dislocation in the public markets is incorrect and overblown," Walrath said in his letter. "Search fragmentation is creating increased demand for our products, and accelerating our product delivery at the same time."

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

February 02, 2026 08:17 ET (13:17 GMT)

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