Stock Analyst Blodget Leaving Merrill Lynch

Henry Blodget, a stock analyst who rode to fame on the Internet boom, has decided to take a buyout offer from his employer, Merrill Lynch & Co.

In a story posted on its Web site Wednesday night, the New York Times reported that Blodget said he opted to leave Merrill under a companywide buyout offer because it “just seemed like a good time to pursue the next thing.”

The Times said Blodget’s buyout package is worth nearly $2 million, but Merrill would not confirm that.

Blodget, 35, helped fuel the Net-stock mania of the late 1990s with bullish projections for many fledgling companies. But as the stock bubble burst, he took criticism about his picks, including Pets.com and EToys, both of which failed before they turned a profit.

His bullish forecasts also brought some legal trouble to the firm. In July, Merrill Lynch agreed to pay a former client $400,000 to settle allegations that he was misled by overly bullish research by Blodget, as well as information provided by his broker at the Wall Street powerhouse.