Feeds

Icahn Yahoo! writes! a! letter!

Urges shareholders to see sense

  • alert
  • submit to reddit

Security for virtualized datacentres

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. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.