Yahoo is getting a taste of the real world. Greed is Good! They thought Steve Ballmer was hostile – hell he practically walked up with flowers with his lips puckered compared to what Icahn is up to. Someone get a fork cause Yahoo is done!
Kara Swisher pens one of the finest blog posts decoding the letter.. Kara has been on fire lately and on top of the Yahoo story from day one.
My fav line from Kara’s post is this:
Icahn wrote: It is clear to me that the board of directors of Yahoo has acted irrationally and lost the faith of shareholders and Microsoft. It is quite obvious that Microsoft’s bid of $33 per share is a superior alternative to Yahoo’s prospects on a standalone basis. I am perplexed by the board’s actions. It is irresponsible to hide behind management’s more than overly optimistic financial forecasts. It is unconscionable that you have not allowed your shareholders to choose to accept an offer that represented a 72% premium over Yahoo’s closing price of $19.18 on the day before the initial Microsoft offer. I and many of your shareholders strongly believe that a combination between Yahoo and Microsoft would form a dynamic company and more importantly would be a force strong enough to compete with Google on the Internet.
Translation: Here I am stating the glaringly obvious. But don’t you like my use of self-righteous and indignant words like “unconscionable”?
Nonetheless, I must ask: What are you smoking over there on the Left Coast?
When someone dangles more than $40 billion to anyone on Wall Street, we’d throw our mother under the wheels of the bus if we needed to to get it. Frankly, we would do it for $12.43.
In any case, your break with reality is my golden opportunity.