Yahoo dips below $10; Icahn, board called out

Yahoo dips below $10; Icahn, board called out

Summary: Yahoo's stock is struggling to stay above $10, the ad deal with Google is in the history books and Microsoft has been quick to say "Not interested." And CEO Jerry Yang has turned into the Internet whipping boy over it.

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Yahoo's stock is struggling to stay above $10, the ad deal with Google is in the history books and Microsoft has been quick to say "Not interested." And CEO Jerry Yang has turned into the Internet whipping boy over it.

But Kara Swisher over at AllThingsDigital poses the $64,000 question (or is it the $31-per-share question) that everyone should be asking: Where in the world are Carl Icahn and Yahoo's board of directors? After all, they are Yang's boss and Icahn made such a stink over taking control of that board - first with a proxy fight and then a settlement that included a few new board seats - you would think that a major shakeup would be happening.

But, nope. Investors tell Swisher that board members "have no sense of urgency or seem to feel any pressure to do anything, even though by every metric they have failed.” Another investor told her: “With all the other things going on in the economy, I have just decided to move on and write Yahoo off…but the lack of action by the board is really hard to understand.”

Ouch. Wasn't Icahn, who attended his first official meeting as a board member back on September 24, supposed to come in and play Rambo on the company? And didn't he bring a couple of his boys as backup - Frank J. Biondi Jr., former Universal Studios chairman and CEO and former head of Viacom, and John H. Chapple, former CEO of Nextel Partners - to help shake things up? If nothing else, give us a search deal with Microsoft, at the very least. Instead, nothing.

In many respects, Icahn’s proxy shakeup with Yahoo resembles what happened with Motorola. Icahn in 2007 launched a proxy fight for a Motorola board seat. He lost that battle, but remains a shareholder. Motorola in 2008 cut a deal to put two of Icahn’s picks on an expanded board. In other words, no one really wants an extended proxy war. The problem: Icahn’s proxy maneuvering and Motorola’s move to placate him hasn’t done anything for the stock.

Yahoo's stock dipped as low as $9.76 today - the first time since 2003 that it's fallen under $10. Shares were up almost eight percent, closing at $11.15 in regular trading. In after hours trading, however, shares dipped, down to $11.02. A financial timeline for Yahoo is below. (Click to enlarge)

Yahoo Chart

Topics: CXO, Enterprise Software, Legal, Mobility, Social Enterprise

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12 comments
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  • I suspect Icahn...

    ...is building a powerbase and sounding out the money men before sharpening his dagger.
    Sleeper Service
  • RE: Yahoo dips below $10; Icahn, board called out

    If you believe in the Yahoo brand and product for the long-term, $10 per share is a great buying opportunity.

    Andy Hoffman
    amh210
    • Dip Gain !

      Very True, I agree on with Andy !
      Mehul Bhujwala
  • MSFT down from $32 pre-offer to $20 yesterday. How does this affect deal?

    When looking at these numbers don't forget that the whole market is down. Since the offer was in stock, and Microsoft's stock price is down 35%+ since just before the offer, how would this loss of capitalization affect any offer?

    Just curious.
    Basic Logic
  • "Shares were up almost eight person" ?

    Are you dictating these blog posts to get "percent" recgonized as "person" ? :)
    PB_z
    • good catch...

      must have been a brain freeze moment. i fixed. thanks for pointing out.
      SamDiaz
      • oh Sam...

        you give in too easily. The shares were probably up
        eight persons. Yahoo is going through changes. Changes
        need to be made and they need to be drastic.

        I discuss just some of these in my video proposal that
        I posted online yesterday at http://is.gd/82O7

        If I were CEO of the company (and I could be),
        Would start with a refresh of the board as there's
        nobody there that reflects the current market of the
        company. Also, where's the women? How about making the
        scales a bit even there. Also there need to be more
        women on the management team. Restructure divisions
        and refocus on a common vision. The company is off in
        many different directions. Also, the brand is missing
        from view on a lot of acquisition sites. That would
        change immediately.

        There are many things that could be done by me and my
        team were I to be CEO of Yahoo. All's Yahoo has to do
        is ask. Plus, I am affordable. More so than any other
        Executive on the planet.

        Michael Murdock, CEO
        DocMurdock - Internet Business Consulting
        ceo@...
  • Sell everything you own and buy YAHOO stock

    Please show us how much you think this is a great buy. When it gets to $2 then maybe you'll have a point. Icahn f'd up by not sticking to his original plan to take over the whole board instead of just 3 seats. If he'd have waited one more quarter he could have pulled it off.
    Johnny Vegas
  • When has iCon EVER done anything positive...

    ...for ANY of the companies that he's targeted?
    flatliner
  • RE: Yahoo dips below $10; Icahn, board called out

    Help to rapidly organize a grass-roots shareholder effort to effect the resignation of Jerry Yang as CEO of Yahoo at http://www.yangmustgo.org. If you are a Yahoo shareholder or employee, you have a direct financial interest in Yang's departure, which will effect an immediate increase in share value. If you want to participate, please attend our first meeting at Jake's restaurant in Sunnyvale, CA on Tuesday November 8th, 2008 at 6pm. The address is: 174 E Fremont Ave Sunnyvale, CA 94087(408) 720-8884 (Directions)

    Please wear as much purple as possible so we can recognize eachother. At this meeting, we should elect:

    -President/Spokesman

    -Treasurer

    -Webmaster

    -Volunteer Coordinator

    Hopefully, we will discuss:

    *Picketing Yahoo's sunnyvale headquarters all day, every day.
    * Letter writing campaigns.
    * Media outreach.
    * Shareholder mobilization.
    * Avenues for litigation.
    * Online organizing.
    * Fundraising.
    * Preparations for the annual shareholders meeting.

    Please direct inquiries to yangmustgo@yahoo.com
    YangMustGo
    • Given the price of the shares. . .

      Wouldn't McDonald's have been more appropriate?
      dubtek
  • and yes it takes balls to take a stand.

    http://is.gd/82O7 purple or otherwise, it's time to
    clean some house.

    Anyone know anyone on the yahoo board? Have them read
    this and contact me. Am packed and ready to fly up at
    a moment's notice.

    Mike
    ceo@...