they have microsoft on one side that only wants to buy their search engine and on the other side they have a very powerful billionaire corporate raider that is steadly gaining shareholders support in the upcoming proxy fight against Yahoo's Board of directors.
Yahoo may think they can pull another magic rabbit out of their bag of tricks that will save their bacon, but they don't know what Carl Icahn and his band of raiders are capable of accomplishing. This is getting verrrry interesting, to say the least!
What do you people think about this recent mess at Yahoo?
i think that as long as yahoo doesn't go offline, I'm good, because i rely on yahoo services. Chat, Games, Answers, and especially YAHOO MAIL. I used MSN before, and I'M NOT GOING BACK!!! MSN
Everyone involved in this Yahoo situation is between a rock and a hard place. Microsoft wants to increase its presence on the Internet, but doesn't want to overpay for Yahoo. Recall Time-Warner's costly acquisition of AOL. Time-Warner sought a large presence on the Internet, but got a declining business model instead. Icahn and the other short term shareholders of Yahoo paid relatively high prices for their stock. But Microsoft's reluctance to pay a high price for Yahoo limits the profit potential for the Icahns of the world. And if Icahn can't convince other shareholders that he's got a truly viable alternative to management (meaning he can arrange a quick and profitable sale of Yahoo), he could lose a proxy contest. Realistically speaking, there are no other buyers of Yahoo than Microsoft (Google is excluded on antitrust grounds). So Icahn's profit potential isn't necessarily all that great.
Is Yahoo between a rock and a hard place?
Linear Mode
