Search Engine Optimization News Blog

Carl Icahn, the billionaire with a past record of hostile takeovers and proxy fights, appears to have definite ideas about the value of Yahoo and what should be done with it. Icahn bought up 50 million shares of Yahoo earlier this year in an attempt to overthrow the current board and inplement his own vision of selling the company to Microsoft.

Icahn controls close to 5% of the stock, and has every intention of duking it out until the stockholders meeting in August. His heavy campaign to get stockholders to vote his ticket and install a new board is premised on his assurance that he can personally broker a deal with Microsoft’s Steve Ballmer.

However, there is resistance from an unexpected quarter. Another major stockholder has entered the fray, this time on the side of Yang and the current board members seeking to stay seated.

Legg Mason Capital Management has a collective interest in Yahoo to rival Icahn’s, and they don’t want Icahn in control. In fact, the CEO of Legg Mason, Bill Miller, pledged support to the current board, and urged others to do the same.

Yahoo has been seen as increasingly desperate over the ensuing months, as negotiations with Microsoft became heated and the partnership with Google was being hammered out. Some investors were incensed at the refusal of Microsoft’s offer, though others remain staunchly convinced that an independent Yahoo makes for a more competitive market.

The partial merging of Yahoo’s ad market with Google’s raised some eyebrows, but it is still in limbo awaiting approval from the powers that be. Out of sight, out of mind! Is this the chance Yahoo has been waiting for?

With Legg Mason’s support, it wouldn’t take much more to tip the scale solidly in Yang’s favor, and ensure the seated board more time to entrench their positions.

In a reply to the latest Icahn / Microsoft offer, Yahoo turned it down almost immediately, citing the ‘one day only’ offer to be almost an insult. The Icahn / Yahoo battle reached new heights of hysteria in the latest exchange via letters to the stockholders - Icahn continues to maintain that Yang does not have their best interest at heart, whereas the current board responds that Icahn has no true idea what he’s doing.

In the middle lies the presumption that by partnering with Google, Yaho has managed to remain independent.

What is Icahn’s next move? He seems content for the moment taking potshots at Yahoo through various platforms, but his vision for Yahoo may turn out to be just that.