Carl Icahn wants Yahoo CEO fired
By Yi-Wyn Yen
Another day, another angry Yahoo shareholder.
Yahoo investor Carl Icahn told the Wall Street Journal that he wants wants to get rid of Jerry Yang as Yahoo’s CEO for botching the Microsoft (MSFT) bid.
Icahn is putting more pressure on Yahoo (YHOO) in an effort to force a union with Microsoft. “It’s no longer a mystery to me why Microsoft’s offer isn’t around,” Icahn told the Journal. “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.”
The corporate raider’s scare tactics to bring Microsoft and Yahoo together haven’t worked so far. Microsoft CEO Steve Ballmer withdrew a $33-per-share bid one month ago after Yang indicated he wanted a higher offer. Shortly after, Icahn bought up a minor stake in Yahoo and announced plans to launch a proxy fight to oust Yahoo’s board in hopes of convincing Ballmer to come back. But Ballmer has said he has moved on. So far, has not revealed any plans to make another offer.
Icahn told the Journal that he doesn’t believe Ballmer will return because of Yang. Court documents in a Yahoo shareholder lawsuit that were unsealed Monday accused Yang of trying to sabotage the Microsoft deal.
The complaint made by two Michigan pension funds said that Yang convinced the board to adopt a poison pill that would make a Microsoft takeover extremely difficult. Though Microsoft said it was willing to set aside $1.5 billion to retain Yahoo employees, Yang adopted a plan that would allow all employees to leave Yahoo and receive a generous severance package if the company was bought.
“I’m very cynical about many of the boards and CEO’s in this country, but even I am amazed at the lengths that Jerry Yang and the board went to entrench themselves in this situation,” Mr. Icahn told the Journal.
The Journal also reported that Yahoo’s board is scheduled to meet Tuesday.
True .. But in this situation, the core developers (majority of them loyal to Yahoo) interest are more important. Without them, Yahoo is worthless ultimately making the stocks worthless.
I always thought the CEO was supposed to act in the best interest of the shareholders. But a I guess thats why we have agency problems still.
Companies need to quit being intimiated by Carl Icahn! The man has a minor interest in Yahoo yet feels he should be the sole voice. He’s been this way for decades. It needs to end. Whether you agree with Yang’s stance or not, he and the Board should be supported simply for standing up to Icahn, the raider who has trashed MANY companies (think TWA, among many). He swoops in, gets deals made the benefit him, and then swoops right back out. He’s not a long-term investor. He doesn’t care about Yahoo.
Its funny how everyone is blaming Yang. Remember, yahoo was in a lot worst shape than now before he came back as CEO more than a year ago. Everyone is expecting him to make quick turn a rounds when the IT market as a whole has taken a hit, I.E. Google. And you’re right, its not about Yang, Ballmer or Icahn, its about the shareholders. But Icahn does not have shareholders best interest at heart. It’s about whats best for him. In other words, making quick money. Unless you own millions of shares of Yahoo, its not going to benefit you much if Yahoo gets sold.
Micorsfot is a giant just because of windows. windows is nothing but a flawed software which is pushed on to users by msft and its partners. yahoo will soon cease to exist if msft has it’s way with it. ichan needs to show his billions where the sun don’t shine and move on.
It’s not about Yang, Ballmer or Icahn. It is about shareholders. Any move that enhance the value of shareholders is the right move. There is no place of emotions in the corporate world.
Jerry Yang should be fired? He is not repesenting the best interest of the shareholders?
It is more likely that Icahn cares more about making money for himself, not shareholders nor Yahoo. If Microsoft buys Yahoo, trust me that he would sell shares to make money for himself. I admire Yang for showing his care to his employees. I hate those CEOs who tried to make money by doing layoffs to please shareholders or moneygrabbers like Icahn.
You Go Carl!!!
Buy the Damn company and stick Yang in the mail room at $5.15/hr.
I like to see Jerry Yang continue to be Yahoo! CEO. I am a loyal user of Yahoo! services. Icahn acts like the early days of Apple Computer Board Members that forced Steve Jobs out of the company. Icahn has no good intention for the long term success of Yahoo! The real person that needs to leave Yahoo! is Icahn. He has the freedom to sell his Yahoo shares and invest the money into other companies. Icahn is just a divider. Yahoo! users would like to see him go away.
For someone who doesn’t even know how to operate a computer (much less surf the internet and use Yahoo), Icann makes a lot of noise. He should just stick to whatever made him money, the guy is an idiot who’s goal is not to make Yahoo a better company but to make a quick buck and run. Considering Microsoft comes out with products like Vista, while Google keeps on launching useful and creative FREE software, the union of MSFT and YHOO would result in Yahoo being a lesser company than it is today.
Let the tech guys figure it out, have Icann go back to wherever he came from.
Icahn is a dinosaur in Jurassic Park and he’s making a mistake to underestimate Yang.
Icahn know what he is doing, that is the reasonw hy he is a billionaire several times over. he has to be doping something right. Also he is the one who is better educated them us.
Icahn is a has-been! Somehow I have doubts that Microsoft buying Yahoo will be good for internet users or either company. Just because a company is going through a small slump doesn’t mean its business is not good. It just needs to re-energize and find a new way of competing.
I think that Icahn’s efforts will fail. I could see a lot better uses for all these millions – like education programs, feeding the hunger, helping the poor, etc.
America = Greed
Carl Icahn:
you have not started or run hitech co that Jerry Yang did–
Microsoft is on oxygen right now under Mr.Ballmer’s ledership,short of new ideas, late in most all new products and their last Vista, not well received–
I personally don’t think Microsoft will add any value to Yahoo’s share holders, on the contrary, it will dilute Microsoft’s share value because of premium paid–
what we really need is Mr.Ballmer out and some one who can build new products, whtever they may be–
I own Microsoft shares–
Icahn should shut up and let yahoo do its thing…..Yahoo has every right to have its compensation plan as they desire….Just because Icahn made a stupid decision and there is no buyer for Yahoo at the right price, doesnt mean he has the right to critize yahoos business judgement decisions…..
Imagine us telling him that he should cut his employees salary in half because that will make it easier to buy his company…what an vulture…fit for a garbage can….
It is unfortunate that Mr. Yang was so attached to the company he created. Obviously he fails to realize that once you sell a company publicly, it is no longer a private company. Apparently, Mr. Yang and the board were not looking out for the share holders’ best interest. And to think that while Mr. Yang was negotiating with Mr. Ballmer of Microsoft, Mr. Yang and the Yahoo Board was deviously planting a poison pill in Yahoo to destroy Yahoo once Microsoft purchased it. In fact, Yang and the Board was trying to sell a company to Ballmer that would not be worth it’s salt or the price Microsoft would have paid in the final sale. This is wicked. Mr. Yang and the Board needs to be strongly reminded that it is a public company and not a private company. And the best avenue to accomplish this through their wicked and conniving minds is a major class action lawsuit from all share holders. I hope Mr. Icahn will take the lead on this. As for Microsoft, I stronly recommend NOT to buy Yahoo because its loyal employees have been mentally and emotionally poisoned and time will only tell that a loyal employee(s) will sabotage the company once Microsoft purchased it.
Carl is a idiot. What does he know about internet companies? I’d like to see him put 10 years into growing this company if he really cares about the shareholders. Greedy SOBs don’t deserve any respect when it comes to voicing their opinions. I’m glad nothing is going the way he wants it to. Stop crying Icahn.
“…if the company was bought.”
this sentence means nothing in English. Now, “…if the company were bought” has a proper subjunctive. I expect mistakes/ignorance like this from TMZ or some other online rag, but I used to think Fortune was of higher quality.
Let’s be clear about something, the only investor that Carl Icahn is looking out for is Carl Icahn. The guy is a parasite and should be muzzled before he pillages more companies and forces takeovers that don’t better the industry, or the companies themselves in the end.
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Let’s be even more clear about something. At $23/share and apparently dropping as of yesterday, yahoo shareholders would be better off today had the deal been made.
As for Yahoo tanking if the “mostly loyal” developers left, I will say as a developer that has been phrased as being “irreplaceable” to my company in my reviews I will say that this too would pass. In the long run, nobody is indispensable, not marketing, not developers, not accounting, etc.