Icahn against partial-sale bid for Yahoo
Billionaire investor-activist Carl Icahn opposes selling just a portion of Yahoo, telling CNBC on Wednesday that he believes the company's stock in undervalued.
Carl Icahn opposes a partial sale of Yahoo, saying the company is undervalued.
(Credit: CNET News)"I don't think there is very much to having a partial bid for the company, at least as a large shareholder," Icahn said.
Icahn, who is on Yahoo's board of directors, made the statement while addressing rumors that former AOL Chief Executive Jonathan Miller is trying to raise money to acquire all or a part of the Internet pioneer. Miller reportedly believes he can do a deal worth about $20 to $22 per share.
Icahn, who purchased an additional 7 million shares of Yahoo last week, told CNBC that he spoke recently with Miller about the possibility of buying Yahoo.
"Right now I would be against that and I pretty much told Jonathan that," Icahn said. "I think the stock is very undervalued."
He also said that while he had not spoken with others on the board about a partial sale, he thought they would agree with him.
In recent months, Yahoo shares have fallen, along with the rest of the stock market, and have been hovering around the $10 mark--a far cry from the $33 a share Microsoft offered in its takeover bid for the company earlier this year.
Icahn was also queried about who he thought would make a good chief executive for the search pioneer after the recent resignation of CEO Jerry Yang. Icahn said the company needed a CEO who is "a hard-nosed, cost-cutting kind of guy," but did not mention any candidates by name.
He also emphasized that he would still like to see a search deal worked out with Microsoft.
Yahoo has been under great financial pressure lately. In addition to Yang's resignation, there has been a parade of executives abandoning the troubled search company.
After reporting a 64 percent drop in net income and warning that the advertising market is softening, Yahoo announced in October a layoff of at least 1,430 by the end of 2008. The cut follows another in which about 1,000 Yahoo employees lost their jobs in February.
Steven Musil is the night news editor at CNET News. Before joining CNET News in 2000, Steven spent 10 years at various Bay Area newspapers. E-mail Steven.
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Corporate & legal
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Yahoo,
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Carl Icahn,
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Jerry Yang,
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Unfortunately this whole economic downturn not only messed with Jerry's ultimate deal mistake, but it also has devalued the heck out of an awful lot of Yahoo/Icahn stock.
The (auto-generated) letter says
"Important note: Beginning on July 1, 2008, Yahoo!'s annual domain renewal price increases to $34.95 per year.
(Please note that the billing center will not reflect the new $34.95 domain-renewal price until July 1. Until that time, you will continue to see the old renewal price next to your plan.)"
However, on clicking the provided link, I am taken to a billing format, which lists the renewal
price at 34.95$
They lured me first with a 1.95$ domain; then renewal was made at 9.95$. Now, they are asking
for 34.95$!!! I don't have an option, because transfers must be effected at least 60 days before
expiry, which I don't have.
I wrote a stinker addressed to the return address, which naturally bounced back. I wonder if
I should put up my letter here: Let's see.
Thank you for pulling a fast one on me.
Looks like after your company took a big hit
in the Microsoft merger fiasco, you are now
targeting your customers and dipping into their
pockets.
Please tell me when YOU HAVE INFORMED ME through email
about your charges being raised to 34.95$ (thank you for
being so bl--dy courteous as leaving .05$ from
the rate quoted by you.
I know the individuals working at Yahoo are not
responsible for this, but all the same I don't
have any hesitation in calling YAHOO! a ripoff
artiste! In all the years that I have had the
name with your MISERABLE company, I have never
received any service from your miserable company
besides listing my domain on your name server.
What is the GREAT EXTRA SERVICE that your MISERABLE, run-down,
worthless company is offering which entitles you to charge me an additional 250%?
I await your reply.
Bhushan Bhaagii"
Well, this is one man's anger -rage. But if this is they way they behave with their customers,
then the reported $20 billion that AOL's Jonathan Miller is trying to collect, is way way
too high. Wonder if by the time he gets around to it, Yahoo may be worth one-twentieth of
the said sum.
The (auto-generated) letter says
"Important note: Beginning on July 1, 2008, Yahoo!'s annual domain renewal price increases to $34.95 per year.
(Please note that the billing center will not reflect the new $34.95 domain-renewal price until July 1. Until that time, you will continue to see the old renewal price next to your plan.)"
However, on clicking the provided link, I am taken to a billing format, which lists the renewal
price at 34.95$
They lured me first with a 1.95$ domain; then renewal was made at 9.95$. Now, they are asking
for 34.95$!!! I don't have an option, because transfers must be effected at least 60 days before
expiry, which I don't have.
I wrote a stinker addressed to the return address, which naturally bounced back. I wonder if
I should put up my letter here: Let's see.
Thank you for pulling a fast one on me.
Looks like after your company took a big hit
in the Microsoft merger fiasco, you are now
targeting your customers and dipping into their
pockets.
Please tell me when YOU HAVE INFORMED ME through email
about your charges being raised to 34.95$ (thank you for
being so bl--dy courteous as leaving .05$ from
the rate quoted by you.
I know the individuals working at Yahoo are not
responsible for this, but all the same I don't
have any hesitation in calling YAHOO! a ripoff
artiste! In all the years that I have had the
name with your MISERABLE company, I have never
received any service from your miserable company
besides listing my domain on your name server.
What is the GREAT EXTRA SERVICE that your MISERABLE, run-down,
worthless company is offering which entitles you to charge me an additional 250%?
I await your reply.
Bhushan Bhaagii"
Well, this is one man's anger -rage. But if this is they way they behave with their customers,
then the reported $20 billion that AOL's Jonathan Miller is trying to collect, is way way
too high. Wonder if by the time he gets around to it, Yahoo may be worth one-twentieth of
the said sum.
A few months ago, it was Wang saying, I think the stock is undervalued and we can do a deal for $37 and Icahn was blasting him for not taking MS's deal.
Now, with the stock hovering just under $12, Icahn is saying...the stock is undervalued and we can do a deal for $20-$22. Wonder how much it will tank this time?
The really sad thing is Wang thought he was protecting the employees at Yahoo, and instead, they will probably still lose their jobs and the culture will change and, oh yeah their Yahoo stock is basically worthless. Never let your ideals get in the way of the right decision.
I hope these guys don't play poker.
Icahnn's quote that "Yahoo is under-valued" is only based on the huge loss he is going to take on this and his reputation for be such a smart investor.
The Washington Post has an article about Icahnn taking a bath on this deal:
http://www.washingtonpost.com/wp-dyn/content/article/2008/12/04/AR2008120403638.html
Carl, you can't win them all and I think I speaking for many when I say that when corporate stock raider/ shredders take one in the a$$ the rest of the stock community smiles.
SUCKER!
Washington post article:
http://www.washingtonpost.com/wp-dyn/content/article/2008/12/04/AR2008120403638.html