Stock Market News: Icahn and Yahoo (YHOO) Come to an Understanding
One of the biggest critics of Yahoo (YHOO) through the whole Microsoft attempted takeover drama has been Carl Icahn. Icahn has been openly critical of the Yahoo and its repeated rejection of Microsoft’s attempts to buy the company — or at least the search portion of the company. Now, in order to stave off a possible upset by Icahn and like-minded investors at the August 1 shareholder meeting, Yahoo has agreed to let Icahn sit on the board. MarketWatch reports on what Yahoo hopes to gain by allowing its strident critic to help make decisions in an active manner:
By adding the company’s fiercest critic to its board, Yahoo hopes Icahn will gain a better perspective of Yahoo’s strategy to improve its business, while at the same time putting an end to a rancorous public dispute.
“This agreement will not only allow Yahoo to put the distraction of the proxy contest behind us, it will allow the company to continue pursuing its strategy of being the starting point for Internet users and a must buy for advertisers,” said Chief Executive Jerry Yang in a statement.
At any rate, the news hasn’t done anything to help YHOO on the stock market. The stock price remains low — much lower than when Microsoft was actively seeking to take over the company.
My question is this: by expanding the Yahoo board and including Icahn, is Yahoo CEO Jerry Yang further cementing his current image as someone who doesn’t adequately grasp the situation? Many investors have expressed a lack of confidence in Yang, and this move may only serve to confirm the image. Alternately, however, it could help Yang by proving that he is willing to work with others to improve the company.
What do you think? Does this latest move with Icahn prove Yang to be more competent or less competent?
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions.
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