Ceasefire Between Yahoo, Icahn
Battle is over, but not the war.
Internet behemoth Yahoo (YHOO) and legendary activist investor Carl Icahn have been engaged in a seeming battle-to-the-death over board seats, shareholder confidence and the future direction of the company.
But this morning, the two parties reached a settlement: 8 members of Yahoo's existing board, excluding Robert Kotick, will stand for re-election. In addition, Icahn will join the board, and the 2 remaining seats will be filled from a list of 9 candidates chosen by Icahn: The 8 members of Icahn's original slate plus Jonathan Miller, former Chairman and CEO of AOL (TWX).
But this isn't the end of the war; at most, it's a temporary ceasefire. Put simply: Once Icahn assumes his seat on the board, do you really think he'll keep quiet?
Hell, no - being Carl Icahn, he's certain to do everything in his power to ensure that his roughly 5% stake appreciates in value.
And I wouldn't watch the gossip pages for news of Icahn and Jerry Yang cuddling up over lattes or swapping casserole recipes any time soon. On the contrary: If management fumbles potentially value-enhancing transactions, or refuses to entertain further negotiations with Mister Softee (MSFT), expect Icahn to be working behind the scenes for the ouster he wanted in the first place.
Recall the Blockbuster (BBI) saga: In 2005, Icahn secured a place on the video chain's board, from which he proceeded to oppose CEO John Antioco's $50 million bonus. By 2007, Antioco was history.
And Yang and company would do well to brush up on their history.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter