Finally, Icahn Bails on Yahoo

Includes: AABA, MSFT
by: Andy Beal

The single biggest PITA for Yahoo has decided to leave his board position.

If you’re not aware of just how disruptive the self-labeled "activist investor" Carl Icahn has been, a quick review of our archives should bring you up to speed.

It appears that Carl Icahn isn’t happy unless he’s getting his way, and for all intents and purposes, he’s had his way with Yahoo (YHOO). After criticizing the company for not selling to Microsoft (NASDAQ:MSFT), forcing his way onto the board of directors, then dumping a bunch of shares, our prediction that he was about to bail, has come true.

In a parting statement, Icahn appears to offer legitimate praise for Yahoo CEO Carol Bartz:

Carol is doing a great job and I believe the Microsoft transaction will provide great long term benefits, the potential of which many still do not understand.

Translation: Now that Yahoo has given up on search, it will start fading away–making it much easier for Microsoft to mount another takeover bid.

Roy Bostock, Chairman of Yahoo, was equal in returning praise for Icahn:

Carl has been an important member of our board and has helped us through some significant transitions. We are all grateful for his active role shaping the future of Yahoo.

Translation: Security!

I didn’t spot a statement from Bartz herself, so we’ll remind you of what she had to say about Icahn, not so long ago:

Icahn is just another shareholder. What’s he going to do, fire me?


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