Yahoo shares fall 21 percent after Microsoft deal exit

NEW YORK (Reuters) - Shares of Yahoo Inc (YHOO.O) tumbled 21 percent in pre-market trade on Monday after Microsoft Corp (MSFT.O) withdrew its $47.5 billion takeover offer for the Internet search and media company.

The decline also followed Citibank's downgrade on Yahoo shares to "sell" from "buy".

The stock tumbled to $22.65 on Monday morning. The shares rose nearly 7 percent to $28.67 on Friday on hopes of an agreement between Microsoft and Yahoo.

(Reporting by Franklin Paul, editing by Mark Porter)