Icahn Won’t Add Value To Yahoo
June 27, 2008 by tim
In a letter to shareholders, Yahoo!’s Roy Bostock (Chairman) and Jerry Yang (CEO) have explained that the Microsoft offer will benefit Microsoft more than it will Yahoo!, and that Carl Icahn’s proposed new board won’t add value to the company.
Like a wounded animal, Yahoo is hoping to find its escape by an alliance with Google instead of a take-over by Microsoft.
In this latest letter, the beseiged company is appealing for shareholders to keep the current board rather than vote for Carl Icahn’s proposed replacements. (See below).
With Google waiting (rather more patiently) in the wings, Yahoo loyalists led by Bostock and Yang, are hoping they can move forwards with Google’s 10 year plan bringing $800 Million per year instead of Microsoft’s $7.73 billion investment and $1bn-per-year deal.
It looks like it will come down to a battle between those who are emotionally involved in the culture and values of Yahoo! against those who are driven by optimizing the financial outcome.
Let me know how you think the Internet would change if there were no more Yahoo! - would you miss it?
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Hi Tim,
Thanks for keeping us abreast of the news - while I tend to favour Google for my web-based Email, Google groups & search engine, I think it is a good thing to have competition in this market place as any other, is it not? The question is whether Yahoo would be just absorbed by Google, or work together in some JV. Evidently the board feels that it is better for Yahoo to go with Google than Microsoft…
KR
Alison
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I for one would be sad if yahoo went away as we see it. I think that those companies are getting too big.
For example, Google’s monopoly and unforgiving way of dealing with adsense accounts is awful. Imagine if they get that much more?
Hopefully, neither would just absorb Yahoo. Only time will tell.
[Reply]
Hey Tim!!
It’s the all too familiar struggle of creative minds like Bostock & Yang (Jobs @ Apple - the 1st time) being pushed to create wealth for investors as opposed to the very thing that got them where they are now.
I’d hate to see the original spirit of Yahoo lost for the sake of forced wealth creation. However, as a public company the Executives have a fundamental responsibility to create wealth for the investors.
Competition breeds innovation from creative minds. Google needs competition now - from creative minds - or we all lose.
Ross
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