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Carl Icahn, the man who a couple of days back had nothing for Yahoo save for harsh words and an ouster of its CEO Jerry Yang and replacement of Yahoo’s board. The reason was its failed deal with Microsoft; now emerges with a statement that might just relieve him as a silver lining of the dark clouds that hovered over Yahoo or quite some time.
The purpose for that is the deal Yahoo has struck with Google on the 13th of January, as he told Reuters;
“While the Google deal is not the same as an offer of $34.375 per share for Yahoo, I am continuing to study it, and it might have some merit.�
The deal allows Google to walk away in case Icahn wins the battle of Proxies and replaces the board of Yahoo, despite all this Icahn favours the deal as a better alternate to a complete acquisition. Icahn also pointed that the change of control might be enough to make him step back on his campaign to replace Yahoo’s board.
So does he opt for an all out favour of the Yahoo – Google deal instead of Microsoft’s acquisition of Yahoo and more importantly will he pull off his campaign of the battle and let it all go smooth? The idea might sound intriguing but given Icahn’s knack of keeping an eye on healthy profits and Google’s ability to generate revenue from online advertisements it would be best for him to let it flow and figure out in time how it favours his shares in Yahoo.
The investor who owns more than 4% of Yahoo’s shares was of the opinion that the current deal with Google was better than letting Microsoft take full control with its $47.5 billion bid for Yahoo. in an interview Icahn said;
“I continue to be extremely disappointed with the Yahoo management, but the Google deal might have some merit and seems to be better than the alternative proposed by Microsoft.�
Despite being quite vocal about his grudges with the management he preferred not to comment whether he would continue his attempt to topple the entire board of Yahoo and place his hand picked directors or to be more lenient might allow a minority representation on Yahoo’s Board.
Nonetheless, after giving away nothing save all the heated words for Yahoo, Icahn has shown the much needed flexibility. With over 59 million shares at stake that belong to hi alone, he has got every right to be worried about the jimbo Yahoo ha been in over the recent past.
