Icahn Swims Against the Tide, Increases Yahoo Holdings

Billionaire investor and Yahoo Inc. (YHOO) board member Carl Icahn has increased his holdings in the Sunnyvale, California-based Web Portal by adding 6.8 million shares to his position for about $65 million. According to a filing with the Securities and Exchange Commission, various Icahn entities purchased, between 11/24 and 11/26, 6.8 million shares of Yahoo at an average price of $9.92. This brings Icahn’s total stake in the Internet company to 75.6 million shares or 5.4%. At Wednesday’s (11/26) closing price of mid-$10 levels, Icahn’s stake was worth approximately $800 million.

Icahn agreed to join Yahoo’s board of directors in July after waging a proxy battle against Yahoo’s management to reach a deal to sell all or part of the company to Microsoft (MSFT). After the agreement was reached he stressed again his believe that the sale of the whole company or the sale of its search business “in the right transaction must be given full consideration.” At the time, Mr. Icahn owned 68.7 million Yahoo shares, or 4.98% of the company’s common stock. Negotiations between Yahoo and Microsoft ultimately ended with the software giant withdrawing its buyout offer.

Recently, Yahoo reported unimpressive third-quarter results. Many analysts remain unenthusiastic about the company’s prospects, implying that renewed action by Icahn could take place.

Yahoo’s continued poor performance has caused disappointed investors to dump their Yahoo shares.

Disclosure: None

Comments

[User 13958:]

I wonder what Ichan knows....sitting on the Board....that us "poor-er investors" do not know?

Maybe, some new news will soon emerge on a deal somewhere, with someone?

2008 Nov 28 08:35 AM

[jackooo:]

Icahn is buying more to cost average. If he could bail he would. He just got sucked into his own vacuum. lol lol

2008 Nov 28 11:15 AM

[MrBuzz:]

Do not count Yahoo out as a independent company Carl. I know your wise and do not do nutty things. So think. With the current business & financial environment Yahoo is even better positioned to grow than is Google. In fact I think Google is going to hit some wet pavment soon.

If I were running Yahoo. I would beef up the financial pages, improve the news, reinvest time in Yahoo 360 to build on base of loyal fans and tied to the largest internet mail in the world - Yahoo Mail ! I choose to be paid Yahoo Mail customer. I like the classic (hate the new one). Because its Yahoo the new one is a copy of the other guys ! Stop that, be original. Be true to thy self ! Then Yahoo will prosper.
PS - Bring me on board. lol

2008 Nov 28 12:40 PM

[investor88:]

Do not agree with Icahn increasing stake in a weak company like Yahoo but no one can predict the future so let time be the arbiter of diverse opinions.

2008 Nov 30 08:32 AM