When I first saw the reports that Microsoft (NASDAQ: MSFT) was looking into the possibility of a non-acquisition deal with Yahoo (NASDAQ: YHOO), my reaction was "What a rip-off!" What's currently being discussed would seem to give Microsoft access to the parts of Yahoo that it wants without having to acquire the company. If Yahoo goes through with this, the company would seem to have no bargaining chip left to push for a higher price from Microsoft. As the crude saying goes, why buy the cow when you can get the milk for free.
A source close to Carl Icahn reportedly says that he sees it much the same way. Reuters quotes the source: "Microsoft is trying to get the milk without buying the cow, and if you look at Icahn's history, he has never been used that way. He does not want to see Yahoo pushed into some joint venture with Microsoft and is not going to be used to push Yahoo into it."
If Yahoo thinks some sort of joint venture will appease Icahn, it's got another think coming. But then again, Icahn is famously unpredictable. As Steve Miller wrote about him "In face-to-face meetings he gave everyone whiplash. One moment he'd bellow, 'That's the stupidest goddamn thing I ever heard heard,' and the next he'd put his arm around you."
The Yahoo/Microsoft battle was interesting. The addition of Carl Icahn to the chamber pot could make it classic.
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Reader Comments (Page 1 of 1)
5-19-2008 @ 3:19PM
roxx said...
Way back in the gay 19 ninties*, they used to call this approach "greenmail". Msft, who after all, is the only interested party, will enter a deal and Icahn will be paid off for his time and Yhoo will swallow their pride and do whats best for shareholders.
Everybody goes home happy and time marches on.
:)
rxx
*reference was to 1890's redux, not sexual orientation, though if the shoe fits, lol.
5-20-2008 @ 9:13AM
Mitch Alepoudakis said...
Since Carl Ichan got involved in this Yahoo
MSFT fiasco, it's a horse of a different color.
MSFT has been double clutching ideas to get
this off the ground and as quickly as possible.
If Mr. Carl gets a new board, MSFT will be on the
outside looking in and I am sure Mr. Wang
and his group dont want end up with egg on their
faces.
Shareholders are miffed and I am one of them,
something should be done soon and I think
the "cat and mouse" game is over. Money talks
and BS walks..........and Ichan has lots of marbles
and good support that has lots of marbles,
so it should be interesting the next few weeks.
Mitch Alepoudakis