Backstory: "Yahoo's shares shot up Tuesday after a billionaire activist investor with a history of closing controversial corporate deals let it be known he is poised to launch a fight for control of the Internet icon.
Carl Icahn, who was instrumental in Oracle's takeover of BEA Systems, has been buying Yahoo stock since Microsoft withdrew its offer May 3.
According to the Wall Street Journal, Icahn owns about 50 million Yahoo shares, or about 4 percent of the company. Icahn declined to speak directly with reporters about his stake, which was first reported by CNBC.
News reports that Icahn was considering backing a dissident slate of nominees to the Sunnyvale company's board of directors drove Yahoo's shares up more than 5
Continuing coverage percent, as investors bet Icahn would be able to broker a new deal with Microsoft. Yahoo's shares closed at $26.56 in regular trading Tuesday."
Source: http://origin.mercurynews.com/businessheadlines/ci_9253609
Yahoo investors still steaming over the failed opportunity to cash out believe CEO Jerry Yang misrepresented their interests, but are these same interests inline with Yahoo's? Mr. Icahn is clearly in it for the money (he made a cool $300 million when he unsuccessfully tried to breakup TimeWarner in 2006). Forcing a deal between Microsoft and Yahoo right now will only add to his (and other Y! investors') pocketbook. The fate of the two tech giants should be decided by their business savvy (or lack thereof) -- not be made into a business.
Yahoo may think that it can hold onto its independence, but really, it's days are numbered. If it's not Microsoft or Carl Icahn, someone else will eventually buy them up and take over.
Microsoft has turned into the 'runaway bride' and has decided that the $48 billion wedding fee was too high a price for the marriage.
Microsoft's next course of action will likely be to try to form a competitive advantage through tie-ups with other Internet companies that could pull more consumers and advertisers to its Internet services.
As Google continues to leverage its huge marketshare advantage by increasing advertisers' costs, Microsoft has an opportunity to become the umbrella for a stable of many specialty search engines...at a much lower cost-per-click (CPC) price than Google offers.
For online advertisers, the lower CPC coupled with Microsoft's ability to track the clicker promises to provide a better ROI.
Isn’t this just amazing? Like, what does Carl Icahn know about the Internet? Sorry, make that communications?
Wouldn't it be interesting to know just what he and his nominees intend to do with Yahoo should they succeed in taking control?
What are his proposals, recommendations, considerations and models for the social behemoth? The tens of millions of subscribers/ users should be asking these and many more questions. Didn't they in fact contribute to making Yahoo what it is today? And if so, then shouldn't they have some say in its future?
The following comment from a Bloomberg article demonstrates Icahn’s real lack of vision:
Icahn said in a letter to Yahoo's board that a combination with Microsoft ``is by far the most sensible path'' if the Internet company wants to take on Google Inc.
Take on Google? That's it? Microsoft, Icahn and others want to take on Google? It's got to be a misprint, a mistake, a comment taken out of context? Why consider taking on Google? Why should any of the big media companies even see Google as a threat?
Sure the Big 'G' makes oodles and oodles from advertising revenue and sucks in a zillion people every instant of the day through their search site. But, so what? Google is really just a utility and not much more than that! A bit like using MS Word - a utility you use when you need it. Google might be the window to the omniverse but users rarely, if ever, arrive at a google site on the other end. Hey folks! Wake up! Google is an advertising engine not a content developer! (Though I have seen their attempt at content once on Youtube). I arrived here without Google. I haven’t clicked on any of the adds that Google may have pushed here. In fact, I almost never click an add, anywhere! I sorta think of Google as the emperor with no clothes. Sure, it’s beyond massive but it hasn’t done anything that razzles or dazzles or excites, amazes or inspires like, for example, the Disney of yesteryear.
So why the fuss?
Could it all be about…. Money?
Hmmm...probably! But then again, what if Team Icahn fails to produce any tangible difference to Yahoo? Sure, they may pick up some cash along the way by assembling a super team, spruiking to the investment community that 'we're here to kick the G's butt' and change the world - but really, WHAT ARE THESE PEOPLE GOING TO DO THAT THEY HAVEN’T ALREADY DONE! For a start, the nominees sound like a committee. How are they and their ego's going to make decisions? Whose vision are they going to follow?
Beyond that, I say, "let them have it!"
Jerry and Co, you guys should grab the loot and start over again. Easy as that! No big deal. In fact it might just give you a whole new perspective on things. Have a holiday. Take off somewhere and relax, kick back, enjoy yourselves and watch Icahn and his brains trust wrestle with the Big G(orilla)!
In time, all things will change as they do and have since the beginning.
Personally, I think there's a bigger picture on the horizon - one which seems to have been overlooked during all the squabbling. The true prize lies just around the corner.
I surely hope not. It is beyond me what Yahoo's great struggle is? It has a huge overall user base, the number one financial and sports sites (by traffic), the best web based email and growing property in Yahoo Buzz that many of the participating bloggers claim provides more traffic than Digg. Yahoo is not Google, and this is its strength. Yahoo is a portal to much of the best and trusted content online. True Yahoo lost Search to Google, but that is all Google does well. Let Google take over and monetize the long tail search advertising for Yahoo and it will provide even more revenue to Yahoo then if they kept it in house. Yahoo does not need Microsoft. It is the other way around and I suspect Microsoft ownership will rebrand, dismantle and muddle all of Yahoo’s strengths. I believe the media hype has overshadowed reason and consumers win if the deal doesn’t go through. But unfortunately most mergers rarely look at its impact on consumers.
8 Total
May 14, 2008 at 12:59pm
Lynne d JohnsonBackstory: "Yahoo's shares shot up Tuesday after a billionaire activist investor with a history of closing controversial corporate deals let it be known he is poised to launch a fight for control of the Internet icon.
Carl Icahn, who was instrumental in Oracle's takeover of BEA Systems, has been buying Yahoo stock since Microsoft withdrew its offer May 3.
According to the Wall Street Journal, Icahn owns about 50 million Yahoo shares, or about 4 percent of the company. Icahn declined to speak directly with reporters about his stake, which was first reported by CNBC.
News reports that Icahn was considering backing a dissident slate of nominees to the Sunnyvale company's board of directors drove Yahoo's shares up more than 5
Continuing coverage percent, as investors bet Icahn would be able to broker a new deal with Microsoft. Yahoo's shares closed at $26.56 in regular trading Tuesday."
Source: http://origin.mercurynews.com/businessheadlines/ci_9253609
May 14, 2008 at 1:59pm
Gloria SinYahoo investors still steaming over the failed opportunity to cash out believe CEO Jerry Yang misrepresented their interests, but are these same interests inline with Yahoo's? Mr. Icahn is clearly in it for the money (he made a cool $300 million when he unsuccessfully tried to breakup TimeWarner in 2006). Forcing a deal between Microsoft and Yahoo right now will only add to his (and other Y! investors') pocketbook. The fate of the two tech giants should be decided by their business savvy (or lack thereof) -- not be made into a business.
May 14, 2008 at 3:11pm
Rachel KingYahoo may think that it can hold onto its independence, but really, it's days are numbered. If it's not Microsoft or Carl Icahn, someone else will eventually buy them up and take over.
May 14, 2008 at 3:50pm
John AgnoMicrosoft has turned into the 'runaway bride' and has decided that the $48 billion wedding fee was too high a price for the marriage.
Microsoft's next course of action will likely be to try to form a competitive advantage through tie-ups with other Internet companies that could pull more consumers and advertisers to its Internet services.
As Google continues to leverage its huge marketshare advantage by increasing advertisers' costs, Microsoft has an opportunity to become the umbrella for a stable of many specialty search engines...at a much lower cost-per-click (CPC) price than Google offers.
For online advertisers, the lower CPC coupled with Microsoft's ability to track the clicker promises to provide a better ROI.
May 16, 2008 at 12:53am
think feeldoIsn’t this just amazing? Like, what does Carl Icahn know about the Internet? Sorry, make that communications?
Wouldn't it be interesting to know just what he and his nominees intend to do with Yahoo should they succeed in taking control?
What are his proposals, recommendations, considerations and models for the social behemoth? The tens of millions of subscribers/ users should be asking these and many more questions. Didn't they in fact contribute to making Yahoo what it is today? And if so, then shouldn't they have some say in its future?
The following comment from a Bloomberg article demonstrates Icahn’s real lack of vision:
Icahn said in a letter to Yahoo's board that a combination with Microsoft ``is by far the most sensible path'' if the Internet company wants to take on Google Inc.
Take on Google? That's it? Microsoft, Icahn and others want to take on Google? It's got to be a misprint, a mistake, a comment taken out of context? Why consider taking on Google? Why should any of the big media companies even see Google as a threat?
Sure the Big 'G' makes oodles and oodles from advertising revenue and sucks in a zillion people every instant of the day through their search site. But, so what? Google is really just a utility and not much more than that! A bit like using MS Word - a utility you use when you need it. Google might be the window to the omniverse but users rarely, if ever, arrive at a google site on the other end. Hey folks! Wake up! Google is an advertising engine not a content developer! (Though I have seen their attempt at content once on Youtube). I arrived here without Google. I haven’t clicked on any of the adds that Google may have pushed here. In fact, I almost never click an add, anywhere! I sorta think of Google as the emperor with no clothes. Sure, it’s beyond massive but it hasn’t done anything that razzles or dazzles or excites, amazes or inspires like, for example, the Disney of yesteryear.
So why the fuss?
Could it all be about…. Money?
Hmmm...probably! But then again, what if Team Icahn fails to produce any tangible difference to Yahoo? Sure, they may pick up some cash along the way by assembling a super team, spruiking to the investment community that 'we're here to kick the G's butt' and change the world - but really, WHAT ARE THESE PEOPLE GOING TO DO THAT THEY HAVEN’T ALREADY DONE! For a start, the nominees sound like a committee. How are they and their ego's going to make decisions? Whose vision are they going to follow?
Beyond that, I say, "let them have it!"
Jerry and Co, you guys should grab the loot and start over again. Easy as that! No big deal. In fact it might just give you a whole new perspective on things. Have a holiday. Take off somewhere and relax, kick back, enjoy yourselves and watch Icahn and his brains trust wrestle with the Big G(orilla)!
In time, all things will change as they do and have since the beginning.
Personally, I think there's a bigger picture on the horizon - one which seems to have been overlooked during all the squabbling. The true prize lies just around the corner.
thinkfeeldo
May 16, 2008 at 1:02am
think feeldoPS.
While Rome burns.....
TFD
May 18, 2008 at 12:43pm
I surely hope not. It is beyond me what Yahoo's great struggle is? It has a huge overall user base, the number one financial and sports sites (by traffic), the best web based email and growing property in Yahoo Buzz that many of the participating bloggers claim provides more traffic than Digg. Yahoo is not Google, and this is its strength. Yahoo is a portal to much of the best and trusted content online. True Yahoo lost Search to Google, but that is all Google does well. Let Google take over and monetize the long tail search advertising for Yahoo and it will provide even more revenue to Yahoo then if they kept it in house. Yahoo does not need Microsoft. It is the other way around and I suspect Microsoft ownership will rebrand, dismantle and muddle all of Yahoo’s strengths. I believe the media hype has overshadowed reason and consumers win if the deal doesn’t go through. But unfortunately most mergers rarely look at its impact on consumers.
May 21, 2008 at 2:40am
Sze Ka ManI dont think so.
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