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Icahn claims sabotage, ill-intent behind Yahoo plan

updated 09:30 pm EDT, Wed June 4, 2008

Icahn claims sabotage

Investor Carl Icahn on Wednesday issued a letter addressed to Yahoo chairman Roy Bostock, claiming that the actions of CEO Jerry Yang and other members of the board went out of their way to sabotage a potential deal with Microsoft. Silicon Alley Insider reports that the letter sets up a villainous scenario related to the show-stopping severance plan a state judge revealed on Monday. The plan would have a potential cost of $2.1 billion to Microsoft, had the unlikely scenario occurred where all employees quit upon a takeover.

Icahn paints a grim portrait of the entire situation, saying that the only way to "salvage" Yahoo, would be to merge with Microsoft. He writes that the board is taking contradictory actions, having so far rebuffed a $40, $33, and $31 per share offer, but saying it would consider deals that would be in the "best interests of the shareholders."

Icahn considers that Yahoo's only course of action should be to dissolve the deal-breaking severance plan, and approach Microsoft in acceptance of its original offer. He claims that the plan, which was implemented in the apparent interests of Yahoo employees, was never actually revealed to them, and as such, is a meaningless stall tactic for the search giant.



By Electronista Staff
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  1. dampeoples

    Mac Elite

    Joined: Jul 2002

    +5

    Well

    Sorry your plan isn't working out, bud. The execs would be fired anyway, more than likely, so might as well write themselves in a sweet severance deal. It's as fair as a hostile takeover, for sure.

  1. hayesk

    Professional Poster

    Joined: Sep 1999

    +6

    "sabotage"

    Yes, protecting the company, its employees, and users is "sabotage"

    Icahn is representative of everything that is wrong with the stock market. He'd lay off thousands, ruin careers, and take away a useful service from the market, just to make a few more million. How much money does this guy need?

  1. danviento

    Fresh-Faced Recruit

    Joined: Dec 2005

    +3

    Only option?

    Um, just because someone wants to buy something I have doesn't mean that I have to sell it. When a crazy guy asks to buy my sister, should I sell her to him? When a company wants to buy the one I work for, should we be sold? The latter example is actually the truth in my case and we've said no time and again.

    Yahoo's first priorities are to its customers (service) and to its future as a comapny. Yes shareholders have a say, but they don't control the whole board. Funny how mediamen love types like iCon, yet no one, including yahoo execs, take him seriously.Just ignore the peanut gallery, folks.

  1. mytdave

    Fresh-Faced Recruit

    Joined: Aug 2000

    +5

    can iCahn

    The only one that needs to be canned is Icahn. What a bozo. Did it ever occur to him that maybe Jerry doesn't want to sell the company he's dedicated his life to? Did it ever occur to him that if M$ did buy Yahoo! that everyone would either jump ship or get fired by M$? Of course Jerry wants to protect the employees! I say BRAVO! I also say BRAVO to Jerry for having the guts to stand up to M$!!

    Icahn... go crawl back into your hole where you came from. M$... take your toys and go home.

    I'm a Yahoo! customer - I don't want M$ and I don't want Icahn! I like Yahoo the way it is!!!!

  1. luckyday

    Fresh-Faced Recruit

    Joined: Apr 2008

    -2

    Please

    Read the full article. You don't know the first thing about business law.

  1. ViktorCode

    Fresh-Faced Recruit

    Joined: Jan 2006

    -3

    What planet are you from?

    "Yahoo's first priorities are to its customers"... "protecting the company, its employees"...
    Sounds nice but these are just fairy tales when we speak about business entities. The primary objective of every commercial company is making money. Money for its owners, biggest shareholders. If it has to offer competitive service to make more money - it will. If it has to lay off thousands to make money - it will. If it has to sell itself completely and lay off employees after that, of boy, it will! Just offer enough money.

    What a naive belief in noble knight that fights evil Microsoft! Remember, Jerry Yang was more than willing to sell Yahoo, but for higher price, not for what Microsoft offered. And the only difference between Icahn and Yang is that the former knows how much the company really cost, while the latter is wandering in some financial fantasy world where Yahoo shares are priced twice as much.

    Anyway, the tale goes on. In my opinion Yahoo has nothing to offer to the market in the long term, shares will slowly fall, unless there will be a merger.

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