Yahoo Board In Trouble
Posted on June 3, 2008 in the Stocks category
.Yahoo Inc set plans on Tuesday to hold its annual shareholder meeting on August 1 in the heart of Silicon Valley, setting the stage for a showdown with activist investor Carl Icahn, who is mounting a proxy fight for control of the company.
Earlier, The Wall Street Journal reported that Icahn, a billionaire investor, would seek to remove Jerry Yang as Yahoo chief executive, citing the company’s failure, so far, to reach a merger or partnership deal with Microsoft Corp.
Icahn has proposed an alternate slate of directors for Yahoo’s board, but had not directly targeted Yang over the breakdown in talks early this month for a $47.5 billion deal.
“It’s no longer a mystery to me why Microsoft’s offer isn’t around,” the Journal quoted Icahn as saying. “How can Yahoo keep saying they’re willing to negotiate and sell the company on the one hand, while at the same time they’re completely sabotaging the process without telling anyone?”
Yahoo fired back in a statement: “Yahoo’s board of directors, including Jerry Yang, has been crystal clear that it would consider any proposal by Microsoft that was in the best interests of its shareholders.”
Oh I love that final quote. Yahoo’s board of directors had a proposal from Microsoft that was in the bets interests of its shareholders. They just turned it down! Yahoo needs to face the facts, it cannot survive by itself against a stronger Google and a richer Microsoft. Yahoo will sell to Microsoft. The only questions left are when, how much, and whether the purchase includes all of Yahoo or just its search engine business.
Yahoo Numbers
Beta 0.86
Dividend & Yield NA
Earnings/Share 0.74
Forward P/E 52.00
Market Cap. 35.98 Bil
fyi P/E 35.70
Return on Equity 10.96
Total Shares Out. 1.38 Bil
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