Yahoo to Icahn – Microsoft Isn’t Buyin’
Yahoo has issued the following press release:
“Yahoo! has confirmed with Microsoft that it is not interested in pursuing an acquisition of all of Yahoo! at this time. Yahoo! and its Board of Directors continue to consider a number of value maximizing strategic alternatives for Yahoo!, and we remain open to pursuing any transaction which is in the best interest of our stockholders. Yahoo!’s Board of Directors will evaluate each of our alternatives, including any Microsoft proposal, consistent with its fiduciary duties, with a focus on maximizing stockholder value.”
Roy Bostock sent a letter to Icahn that, in no uncertain terms, let Icahn know that Yahoo is in no mood to be wagged by the tail and essentially calls him clueless. Boystock says, “we do not believe it is in the best interests of Yahoo! stockholders to allow you and your hand-picked nominees to take control of Yahoo! for the express purpose of trying to force a sale of Yahoo! to a formerly interested buyer who has publicly stated that they have moved on. Please may I remind you that there is currently no acquisition offer on the table from that company or any other party.” Boystock also tells Icahn that “your letter [to the Yahoo board] reflects a significant misunderstanding of the facts about the Microsoft proposal.”
So – Icahn can forget about some sort of forced sale. There has yet to be an article or interview that explains what Yahoo would offer a company that may acquire it – other than a user base. In any event, Icahn will only recover his investment if there is a share buyback plan put into place.
This is all a tremendous distraction for Yahoo. It will be interesting to see if the continued soap opera has an adverse affect on Yahoo’s business performance. Everyday Yahoo employees must go into work everyday wondering if they will have a job in the future. This latest stockholder activity could do more harm than good.
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