Shares of Yahoo fell as much as 20 percent on Monday but recovered slightly after Microsoft withdrew its buyout bid for the Internet portal over the weekend.

Yahoo was down 13.9 percent, or $3.99 at $24.66 at 1:20 p.m. in New York after falling as low as $22.97 in early trading.

On Saturday, Microsoft said that it could not come to an agreement with Yahoo over terms of the buyout. Yahoo wanted a bid as high as $37 per share but the world's software maker would only go as high as $33 per share.

Despite the steep drop due to the failed talks, shares of yahoo are up 27 percent since Microsoft first publicly proposed a takeover earlier this year on January 31.