Icahn! goes! double! or! quits! on! Yahoo!
Lost a billion? Spend another $69m
Troublemaking investor Carl Icahn has doubled his stake in Yahoo! despite sitting on a billion dollar loss from his first stake in the firm.
Icahn built up a huge stake in Yahoo! in May when shares were floating around $25. He tried, and failed, to get the board to accept a $33 a share offer from Microsoft.
According to an SEC filing Icahn has bought another 6.9 million shares - for less than $10 each.
Founder Jerry Yang is taking a back seat at the firm and it is looking for a new CEO. Icahn wanted Yang out in order to push through the takeover by Microsoft.
Talks with Microsoft are rumoured to be still going on - possibly just for its search business. And presumably Steve Ballmer is offering a lot less than $33 a share.
Yang's supposed preferred response, an ad deal with Google, has also fallen through. ®
I don't understand the numbers
"Carl Icahn has doubled his stake in Yahoo! despite sitting on a billion dollar loss from his first stake in the firm."
Icahn built up ..when shares were floating around $25.
..bought another 6.9 million shares - for less than $10 each."
I don't get the mathematics here. If he has doubled his stake, that means he initially bought 6.9 million shares for around $172 million. So how can he lose $1 billion from owning $172 million worth of shares?
Drive it down, buy it cheap, sell at profit
I hope the Yahoo shareholders sue Icahn over his use of trojan board members.
If they want their money back, he has lots and lots to give.
With Yang the Wang out of the way...
..they are still screwed. Seems like Icahn does not understand the concept of cutting his losses.