Feeds

Icahn Yahoo! writes! a! letter!

Urges shareholders to see sense

  • alert
  • submit to reddit

The Power of One Infographic

Yahoo! has written another letter to shareholders making clear exactly how and when it would sell to Microsoft and why shareholders should definitely not vote for Carl Icahn and his proposed slate of board directors. It also suggests Yahoo! could sell its Asian business and return money to shareholders.

The letter does not resort to the capital letters favoured by rival letter-writer Icahn but is equally damning.

Icahn, we are told, has created an impossible situation for himself - he has no leverage with which to negotiate a decent deal with Microsoft because he has no other plan for the company. Secondly Icahn and his would-be board do not have the experience either to restructure a high-technology company in a fast-changing environment. Nor do they have the experience to manage Yahoo! during the estimated year it would take to get regulatory approval of any possible takeover.

The letter asks what is behind the "odd-couple" collaboration between Microsoft and Icahn. It continues:

But Microsoft’s flip flops and inconsistencies over the past five months are so stupefying that one can only conclude that Microsoft was never fully committed to acquiring Yahoo! either because:
  • Microsoft can’t decide what is and isn’t strategically important to its online business; or
  • Microsoft is more interested in destabilizing a key competitor so that it can either enhance its competitive position or buy our highly valuable search business — and the enormously desirable intellectual property associated with it — at a bargain basement price.

The letter outlines three options acceptable to the existing Yahoo! management. The first is to sell the whole company to Microsoft for $33 a share or more provided Microsoft makes an offer which is certain to close and certain to provide that value. An alternative is to sell its search business to Microsoft provided it could do so in a way that safeguards the rest of Yahoo!'s business. Finally the board would consider a potential sell-off of its Asian business and return of cash to shareholders.

Yahoo! is a strong performer across Asia especially in Japan and South Korea.

The letter urges readers to "Please compare and contrast the straightforward, responsible actions and positions of your Board of Directors with the behavior of Mr. Icahn and Microsoft... We believe the Icahn slate and agenda present significant risk to your investment in Yahoo!. We believe you cannot count on Microsoft to bail out Mr. Icahn’s misguided agenda..."

The letter urges shareholders to vote using the white proxy card in favour of the current board of directors.

For all our Microhoo! coverage head here. ®

Boost IT visibility and business value

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.