A few weekends ago, I asked the following questions:
– What are Yahoo (YHOO) shares actually worth? Both now, and 3-5 years from now?
– When Yahoo’s stock gets whacked due to Mr. Softee’s walkaway, does this create an opportunity?Indeed, if Microsoft (MSFT) believed Yahoo was worth $33, wouldn’t that imply the company has a value above
the January 31 pre-bid price of $19 ?
– The key is whether there are any other bidders lurking put there.
Well, via CNBC, the latest rumor broke today about another bidder– Carl Icahn — as much as 50 million shares. Its helped rallied the markets nicely off the lows (other than that, there’s not a whole lot else going on)
Paul is having none of it, and instead suggests a Yahoo-Build-A-Rumor sort of thing . . .
UPDATE: March 13, 2008 4:54pm
WSJ is now reporting this as true: Icahn Enters Microsoft-Yahoo Fray:
Billionaire investor Carl Icahn has amassed a stake in Yahoo
Inc. and is leaning toward launching a proxy contest to unseat at least
part of Yahoo’s board, according to one person familiar with the
Mr. Icahn bought roughly 50 million Yahoo shares since Microsoft
Corp. on May 3 withdrew its unsolicited offer to buy Yahoo, the person
said. Mr. Icahn is expected to decide Wednesday whether to launch a
proxy contest — a Yahoo deadline for board nominations looms Thursday
— and he currently has no assurances from Microsoft it would
reconsider a Yahoo purchase. The person said that Mr. Icahn was unsure
whether he would nominate a full or partial slate of candidates to try
to replace Yahoo’s 10-person board. A shareholder vote on any such
nominees would take place at Yahoo’s annual shareholder meeting on July
What Is Yahoo Actually Worth ? (May 4, 2008)
Was a Private Equity Bid for Yahoo Thwarted by Microsoft ? (February 11, 2008)