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Icahn Ready to Dump Yahoo Board

Icahn Ready to Dump Yahoo Board

by , 11:25 AM EDT, May 15th, 2008

Carl Icahn, well known billionaire and investor, thinks Yahoo "completely botched" Microsoft's buyout offer and is now presenting his own pro-Microsoft proxy board in an effort to oust the Internet search and advertising company's current board. Mr. Icahn is hoping that if his board nominations are accepted, Microsoft will return to the negotiation table and close a deal with Yahoo, according to the Wall Street Journal.

Mr. Icahn commented "It is quite obvious that Microsoft's bid of $33 per share is a superior alternative to Yahoo's prospects on a standalone basis."

Mr. Icahn's board nominations include himself; lieutenant Keith Meister; Dallas Mavericks owner Mark Cuban; former Viacom Inc. Chief Executive Frank J. Biondi Jr.; venture capitalist and brother of Dell CEO Michael Dell, Adam Dell; Harvard professor Lucian Bebcuk; former Nextel Partners CEO John Chapple; former CEO of the ad agency Gray Global, Edward Meyer; money manager Brian Posner; and the founder and co-CEO of New Line Cinema, Robert Shaye.

He added in a letter to Yahoo Chairman Roy Bostock "the board of directors of Yahoo has acted irrationally and lost the faith of shareholders."

Microsoft presented Yahoo with an unsolicited buyout offer in February for US$44.6 billion. The was offer undervalued, according to Yahoo, and was rejected.

Microsoft eventually pressured Yahoo to the negotiating table with an ultimatum and the threat of a hostile takeover attempt. The Redmond-based company ultimately walked away from its offer claiming the buyout no longer made fiscal sense.

Mr. Icahn, however, disagrees and is pushing to get the two companies to strike a deal if his board nominees are elected.

Microsoft has not expressed interest in restarting talks with Yahoo.

Observer Comments

Show: Subjects Only | Full Comments
Close Name:Bosco Posts: 1002 Joined: 03 Jun 2002
Subject: Mark Cuban posted his business plan

Cuban's business plan was posted yesterday. How interesting! It's funny that the reaction from everyone everywhere yesterday was that Carl Icahn didn't care about employees, customers, or anything that didn't result in dead puppies. Now he's got some really bright people on board (and almost on the board) who can make sure Yahoo! returns its investors' investment.

Close Name:Tiger Posts: 1018 Joined: 17 Jun 2003
Subject: What he doesn't get...

Obviously, he doesn't get that not everybody wants to be associated with Microsoft and that the board felt it was a really bad idea to go ahead with the buyout.

'Cause when you lay down with dogs, you're gonna get fleas.

Close Name:Guest
Subject: NO, he doesn't

He's gonna have Steve Ballmer controlling Yahoo. There's nothing bright about that future at all. You see what he's done with Vista? This will spell the end of Yahoo if this idiot gets his way. That's why the people at Yahoo said NO!

Close Name:Guest
Subject: Let Yahoo rot.

They should have accepted Microsoft's offer when it represented a 62% premium to the share price. MSFT will not be returning to bail Yahoo ( or Carl Icahn ) out.

But, if they want to sell at close to the $19 a share price, then maybe... As long a Jerry Yang is fired, & there is no poisoned pills.

Close Name:Guest
Subject: Tiger, Scratch much?

Tigger, regarding your comment "not everybody wants to be associated with Microsoft and that the board felt it was a really bad idea to go ahead with the buyout.

'Cause when you lay down with dogs, you're gonna get fleas."

HOW'S THAT ACTIVE SYNC LICENSE APPLE JUST BOUGHT FROM MSFT WORKIN'?

OR, THE MICROSOFT EXCHANGE LICENSE?

OR, MS-OFFICE for Mac?

You might want to consider that without Microsoft, Apple would've died off a long time ago.

ITCH MUCH?

Close Name:Guest
Subject: Maybe, but . . .

if Microsoft hadn't ripped off Apple in the first place they wouldn't have been in that position!

Close Name:tmotest Posts: 1 Joined: 26 Nov 2007
Subject:

I would like to see Yahoo get by on its own.

Close Name:Intruder -   TMO Mac Specialist Posts: 3149 Joined: 07 Jul 2004
Subject: Re: Tiger, Scratch much?

Quote
Anonymous wrote:
Tigger, regarding your comment "not everybody wants to be associated with Microsoft and that the board felt it was a really bad idea to go ahead with the buyout.

'Cause when you lay down with dogs, you're gonna get fleas."

HOW'S THAT ACTIVE SYNC LICENSE APPLE JUST BOUGHT FROM MSFT WORKIN'?

OR, THE MICROSOFT EXCHANGE LICENSE?

OR, MS-OFFICE for Mac?

You might want to consider that without Microsoft, Apple would've died off a long time ago.

ITCH MUCH?


There is a huge difference between licensing technology and being bought out.

And stating that "without Microsoft, Apple would've died off a long time ago." is bogus. MS products for the Mac (and there are very few) makes Apple a little more palatable in the business world, but doesn't have near the same effect in the consumer space. And if you are saying that MS bailed Apple out with their $150M in 1997 and that "saved" Apple, you 'd be wrong there too.

What saved Apple from dying off was the return of Steve Jobs and the resultant focus.

Close Name:Guest
Subject: China can buy

Maybe Mr. Yang thinks the answer is in China? I don't want to clutter this forum so you can my analysis here http://www.poandpo.com/business-as-usual/can-jerry-yang-find-help-in-china

Do you think there's something to it, or I'm talking about conspiracy theory?

Close Name:Guest
Subject: Just ridiculous

All you back biters need to realize that none of these people care one whit about anything you posted. It's all about business and what the stock price is. These people do not think about how evil MS is or how Apple is that other less popular brand. It's all about the dollars and you are all deluding yourselves if your think your petty "you suck... no, you suck" fights about vapor mean anything to anyone, anywhere.

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