12 thoughts on “Microsoft, Yahoo Back On — or Not”

  1. Am I the only one who proposes Microsoft “hired” Ichan to do this. Why would Ichan put up a billion dollars on a big questionable company as Yahoo! unless MS whispered to him they would buy Yahoo! Carl’s payday comes on sale.

  2. Surely, the stockholders must want the door to remain open. It will take significant change at Yahoo to get it moving in the right direction again. If this change weren’t so personal for Yang, he could take the deal and be off vacationing on a private island, enjoying his money and dictating his book.

  3. OM – while plausible – who in their right mind wants Icahn for a friend (or even arm-length partner). The man writes his own rules of engagement – in fact what is more plausible – MSFT walked away because they sniffed out Icahn coming the way of Yahoo. Think about that one GURU.

  4. Microsoft/Ichan theory:

    1) MS has already returned to the table 5 days after saying they would move on and go another direction.

    2) MS includes the following statement in the new non-merger talks:

    “Microsoft is not proposing to make a new bid to acquire all of Yahoo at this time, but reserves the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo or discussions with shareholders of Yahoo or Microsoft or with other third parties,” the company said in its statement.”

    3) Ichan sinks over a billion dollars into Yahoo!, a company that has tremendous risk associated with it without MS. Ichan’s stock purchases without insider knowledge that MS will buy Yahoo! is highly questionable.

    IMO, this is Microsoft’s easiest and cheapest way to wage a hostile takeover. “Hire” Ichan.

  5. http://biz.yahoo.com/rb/080519/yahoo_microsoft.html?.v=6

    “The software giant’s move to court Yahoo was likely to prompt the Icahn to press Yahoo to further pursue an alliance with Google, a person familiar with the billionaire investor’s thinking told Reuters on Sunday.”

    That’s not what you would call a “MSFT put Icahn upto mischief” view. Not debating here – just counterpoints of people who have watched the Icahn raids over the years!

  6. Why would Ichan put up a billion dollars on a big questionable company as Yahoo! unless MS whispered to him they would buy Yahoo!

    Huh? This theory makes no sense. MS made the offer to Yahoo before Icahn started buying. He bought once the Yahoo board declined the offer. It doesn’t take any sort of special knowledge or collusion to decide that that the rest of the Yahoo shareholders might want to take a 72% premium over their shares that was MS’s original offer. A proxy fight in that sort of situation, when Yahoo’s board has turned down such a massive offer, is a trivially easy thing to think of without any involvement on MS’s part. What it does take is a some knowledge and experience in mounting proxy fights, a willingness to do so, and a lot of cash to sink into buying enough to wage one effectively.

    He doesn’t need MSFT paying him directly to make a killing on this. All he needs is for shares that he bought in the twenties, along with the rest of Yahoo, for the $33/share that has already been offered. YHOO is trading below $28 *right now*, even with lots of speculation that he’ll succeed.

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