Roy Bostock, chairman of Yahoo!, has wasted no time in responding to Carl Icahn's attempt to seize control of the company's board. In an open letter Bostock disputes Icahn's claim that Yahoo!'s board has ignored its duties to maximise shareholder value. He also reminds Icahn that Microsoft has publicly said it has "moved on". …
Short term or long term?
If MS had bought Yahoo and run it into the ground, that would mean a short term bonus to investors but eventually the loss of ALL investment. Now someone with a large block of shares can keep an eye on it and dump them to maximise THEIR value, but the majority of shares are for people who don't have that option and their value is far, far less.
By refusing MS, Yahoo may believe they can continue to make acceptable profits giving a continuing revenue stream that advantage ALL shareholders and therefore realise a better investment when taken to a long-term view of "profit".
I smell shenanigans
MS are not short of cash - so it's not like they couldn't afford the deal if they really wanted Yahoo! - so I'd say they are probably somewhere in the background stirring up this pressure on the Yahoo! board so that after the AGM they can waltz in like a white knight and force the Yahoo! board to accept a takeover at the already offered rate, or even a lower price.
Subtextually Microsoft are still in the game - they're just playing hard ball.
Dear Carl ...
Go ruin some other company. Hey, doesn't Motorola need your attention? You haven't finished scuttling it yet to "maximize shareholder (read: your) value."
@Mark - correct. And Icahn isn't interesting in shareholder value, he's interested in his - and he doesn't care if it eventually means the end of Yahoo(!) - as long as he gets his money.
>>>And Icahn isn't interesting in shareholder value, he's interested in his - and he doesn't care if it eventually means the end of Yahoo(!) - as long as he gets his money.
Welcome to the business world.
I have just two words for you: TWA
(OK, so I can't count... ;-) )
Because I have to...
"Icahn has merger?"
"Icahn has merger?"
You bastard, I never realised that beer snorted out of the nose could hurt so much.
Yes, I know it's only 3pm on a saturday, but it was a heavy night last night and I need to soften the comedown :-0
Re shareholders, it does look like Icahn [iCahn?] is little more than a morally bankrupt financial whore - buying up large amounts of Yahoos stock so he can walk in and gob off about the management - where does that fit in with good business practices?
Mind you, you don't get that well off by having moral standards, eh?
Icahn is a corporate raider along the lines of the Barbary pirates...
... and much more ruthless !! He will strip the assets of any company he can get his hands on and he'll make alliances with the devil if it will get him what he wants. What's the betting he's in cahoots with M$ ??
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