Jerry Yang

Breakingviews awards gold medals in financial Olympics

Jim Kim — Mon, 11 Aug 2008 18:44:42 -0400

In honor of the summer Olympics, here are some medals that Breakingviews would like to see: A "shot put" medal for John Paulson: His big "put" on the subprime crisis made for a very good year. But how much longer can such puts work? How to play the bottom is vexing many. An "$8 billion backstroke" medal to John Thain: He's been doing some back-tracking as of late. A "poll vault" award to Jerry Yang: Turns out Yahoo's service provider miscounted the votes at the recent annual meeting. He received 66 percent of shareholder votes, not 85 percent. What are some medals that you would like to see?

For more:
- here's the Breakingviews article

Carl Icahn, blogger, has bigger plans for site

Jim Kim — Wed, 06 Aug 2008 13:50:43 -0400

When news hit that Carl Icahn was planning to blog, a lot of people were ready to tune in. He made the world wait. But after nearly half a year, The Icahn Report, went live last month. You can read all about his views on the Yahoo situation and whether he and Jerry Yang can work together. His media ambitions seem to have risen a bit. The New York Times reports he has just hired a journalist from Thomson Reuters for his site, which apparently aims to add reportage to supplement his take on the world. This is not a bad idea at all. Communicating directly to the world, bypassing the media, is certainly in vogue in politics. Not that Icahn has gotten a lot of bad press. Some might think this may prove to be a distraction at a time when returns aren't great. But, ahem, I doubt his investors will raise the issue with him.

For more:
- here's the Times item

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

Handicapping Silicon Valley vs. Wall Street

Jim Kim — Tue, 27 May 2008 21:47:47 -0400

The battle for the heart and soul of Yahoo is shaping up to be a real doozy. In one corner: The Carl Icahn-led hedge fund crowd, with a long list of luminaries that are irate at the Yahoo board for not selling to Microsoft. In the other: Jerry Yang, not exactly a seasoned veteran of proxy wars, and his band of technology industry big wigs. One casualty may have already emerged, with former Yahoo director Edward Kozel stepping down last week for personal reasons. Most people are giving the Wall Street crowd the edge. But it is likely to be a memorable battle. In many ways, it is Silicon Valley, where Yahoo is still something of a darling, versus the cigar-chomping Wall Street guys. Yahoo is definitely the underdog.

For more:
- here's the MarketWatch 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