Microsoft

Could Microsoft return to the Yahoo deal table?

Jim Kim — Mon, 07 Jul 2008 16:07:00 -0400

We've been saying all along that we haven't seen the last of Microsoft when it comes to a Yahoo deal. Microsoft has announced that it will not only support Carl Icahn's bid to install a new Yahoo board, but it will consider coming back to the takeover table. Will the hint of a renewed bid from the software giant be enough to sway shareholders at the Aug. 1 annual meeting? Hard to say. Keep an eye on proxy services and how they fall on the issue. The stock soared on the news. This, of course, is no guarantee of a deal. But at a minimum it is some savvy, hardball maneuvering by the Redmond giant. It may yet get the deal it wants. That would be something.

For more:
- here's the AP article

The Icahn you never knew

Jim Kim — Wed, 18 Jun 2008 07:33:31 -0400

Way before Microsoft-Yahoo thrust his name into the spotlight yet again, Carl Icahn was a hedge fund industry icon. But did we really know him? I would suggest none of us really know the financier-celebrities. Some have an army of PR people on their payrolls, and they're adept at working the media. Others take the reclusive route. A MarketWatch columnist spent some time with him and paints a picture of "a charmer. He is funnier than Jay Leno, more good-naturedly acerbic than Don Rickles, and does more straight-talking than John McCain." And this: "You can't schmooze or con him. Icahn figures that the media need him more than he needs any of us (and he might be right)." This at a dinner affair. Interesting stuff. A few questions about Microsoft-Yahoo would have been nice. But the nice chat may have ended earlier.

For more:
- here's the column

Yahoo spurns Microsoft again

Jim Kim — Fri, 13 Jun 2008 06:54:55 -0400

Looks like a Yahoo-Microsoft deal is not going to happen. But it's unclear exactly what went wrong. After seeking a deal for the whole company, Microsoft's latest offer was for its search operations, only. Hedge funds, led by Carl Icahn, will not be happy. But if they prevail at the Aug. 1 annual meeting, it's unclear what more they can do to entice Microsoft, or any other company, to buy it, especially if Yahoo goes ahead on a deal with Google. Article

Yang beats back at hedge funds

Jim Kim — Thu, 05 Jun 2008 13:51:24 -0400

For Jerry Yang, the erstwhile founder and chief of Yahoo, the barbarians are at the gate. He can smell the likes of Carl Icahn and his hedge fund hordes. And yet he is holding on. So how long can he hold on? The hedge fund guys certainly are not going to give up lightly, but it seems that he's holding out less for a miracle than for a more solid deal. Business Week Online reports he wants some guarantees that a deal will hold its value and that there will be some protection against a long regulatory driven delay. So despite his best efforts, it seems like in fighting only for a better deal, he has lost the larger war. What will be interesting is how Microsoft deals with him once the deal is done.

For more:
- here's the article

Hedge funds line up behind Icahn on Yahoo

Thu, 22 May 2008 06:59:57 -0400

Yahoo may have been able to stare down Microsoft at the bargaining table, but we may yet see big M&A fees from a deal. The catalyst in all this remains Carl Icahn. Following his lead, an all-star cast of hedge funds managers have aligned themselves against Jerry Yang and Yahoo, which likely wasn't counting on this sort of shareholder response. T. Boone Pickens told the New York Post, "When I saw what he did, I jumped in behind him." Others include John Paulson, still basking in the glow of his stunning 2007 ($3 billion) and Dan Loeb of Third Point. The Post reports Farallon Capital Management, Appaloosa Management and Mason Capital Management are among those who have written Yahoo! board members to expressing their displeasure.

For more:
- here's the New York Post article

Icahn now main player in Microsoft-Yahoo drama

Tue, 20 May 2008 06:59:58 -0400

The key man in the still unfolding Microsoft-Yahoo pas de deux is not Steve Ballmer, not Jerry Yang, or even Eric Schmidt. It's investor activist Carl Icahn. The New York Times notes that while he has proposed an all-new slate of directors, he really does not want to jump onto the board. What he wants is a deal--with Microsoft. As Microsoft-Yahoo Round 1 wound down, we made the point here that the possibility of a deal wasn't dead. We suggested that Microsoft may likely come riding back into the scene if Yahoo stumbled. Well Icahn and his merry band of fellow disgruntled shareholders have pushed the issue. Microsoft has come riding back, with a limited proposal to buy Yahoo's search business. You'd have to think there may be larger possibilities this time around.

For more:
- here's the New York Times article

Microsoft to the rescue of Yahoo?

Fri, 16 May 2008 06:59:55 -0400

We noted not too long ago that it might not be wise to assume that the Microsoft-Yahoo dance was completely over. Ever since Jerry Yang and company spurned Steve Ballmer and company, Yahoo shareholders have been up in arms. Now, with no less than Carl Icahn declaring war on the Yahoo board, we just might see another deal emerge. Not that Microsoft will storm back to the table, but who else will pony up those kind of numbers. Google of course, but that's about it. Icahn apparently has candidates lined up for all 10 board seats. Look for other hedge funds to start getting involved. So a deal may yet emerge. Pencil in the date July 3. That's when the Yahoo annual meeting will take place.

For more:
- here's a MarketWatch article
- here's an AP article on Icahn's plans
- here's Icahn's letter to the Yahoo board
- here's the response

H-P deal pushes JPMorgan to top of table

Thu, 15 May 2008 06:59:58 -0400

After the Microsoft-Yahoo nondeal rewrote the league tables for the year, here comes another big technology deal with big implications for the standings. The New York Times notes that JPMorgan Chase, by dint of its role in advising Hewlett-Packard in its $13.3 billion takeover of EDS, has inched to the top of the table. It edged out Goldman Sachs, which might have stayed on top if its client had Yahoo ended up in a deal. Don't be surprised if Goldman ends up back on top. One big deal would do the trick. Still, this is rare air for JPMorgan and yet another feather in the cap of Jamie Dimon. Hewlett also retained Lehman Brothers, while Electronic Data hired Citigroup and Evercore Partners, the Times notes.

For more:
- here's the article from the New York Times

SPOTLIGHT: Icahn and Yahoo

Wed, 14 May 2008 06:59:52 -0400

The AP reports that Carl Icahn is building a stake in Yahoo, aiming to wage some sort of proxy war designed to compel the company to re-enter talks with Microsoft. So far, he has amassed a 3.6 percent stake in the company. Article

Odd challenge to Yahoo board

Tue, 13 May 2008 06:59:55 -0400

Since Microsoft's play for Yahoo fell apart, shareholders of Yahoo have voiced displeasure. Several hedge funds have suggested that the board was nothing short of derelict. A suit on behalf of a police and firefighters pension is expected to be filed this week, notes the New York Post. We'll see whether Jerry Yang's bold refusal to sell will pay off. He'll either be a hero or a goat, there is no middle ground. A year from now, Yahoo could well be in play again. For now, shareholders are pondering their moves. One challenge to the board comes from an odd source: Eric Jackson, a hedge fund manager. Despite owning only 96 shares, he has been leading the dissident charges, bent on coming up with an alternative slate.

For more:
- here's the article