Steve Ballmer

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

Google spoiled the Microsoft-Yahoo deal

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

Steve Ballmer and Eric Schmidt have tangled before. Microsoft certainly got the best of Novell way back when. Now Schmidt may have had his revenge. The New York Times reports that Google played the role of spoiler to near-perfection, emerging a the clear winner in the merger-fest. The company offered Yahoo some more sophisticated ad technology, which emboldened Yahoo to holdout for a higher price. Yahoo may have no choice now but to seek a tighter embrace with its one-time foe. Microsoft may yet have the last word. If Yahoo can't get its stock price to reasonable levels--and some hedge funds are furious about what has transpired--the merger talk may heat up again. The best thing that might happen at some point would be for Microsoft and Google to throw off the gloves and bid directly for the company.

For more:
- here's the Times article
- here's the New York Post article on angry Yahoo shareholders