Yahoo! Issues Quick Response To Icahn’s “Ill-Advised” Letter
The saga continues.Â Yahoo! Inc. (NASDAQ:YHOO) issued a quick response to Carl Icahn’s letter containing a 5 point game plan for what would happen if his suggested slate of Directors takes over Yahoo!Â Below is the response:
Â Leaving aside Mr. Icahn’s inaccurate interpretation of our retention
Â plan, we again note that he has no credible plan to operate Yahoo!.
Â We believe that Mr. Icahn’s suggestion that we cancel our retention
Â plan would have a destabilizing impact on Yahoo! and would clearly
Â not be in the best interests of our shareholders. Furthermore, his
Â suggestion that we put out a price publicly to see if Microsoft will
Â alter its stated position is ill-advised. As we have stated numerous
Â times publicly and privately, we are open to any transaction
Â including a sale to Microsoft if it is in the best interests of
For those who don’t want to interpret the letter above, I’ll give a quick summary:
1.) Icahn doesn’t have a credible plan for Yahoo!
2.) Cancelling the severance packages built into the Microsoft Corporation (NASDAQ:MSFT) bid would make the company unstable post-acquisition.
3.) Asking Microsoft to buy the company whole again is “ill-advised” since Microsoft may no longer be interested.
4.) Yahoo! is still open to a sale if the shareholders agree.
The timeline and information source of the Yahoo! & Microsoft saga is available after the jump.
And below is the timeline of the Microsoft & Yahoo! saga:
June 2007: Former Yahoo! CEO, Terry Semel Resigns, Jerry Yang steps up.
July 2007: Yang makes a 100 day plan to get Yahoo! off the ground again.
February 1, 2008: Microsoft makes an unsolicited offer to Yahoo! for $44.6 billion.
February 9, 2008: Yahoo! passes on Microsoft offer.
February 11, 2008: Rumor is that Yahoo! may merge with AOL.
February 12, 2008: Microsoft CEO, Steve Ballmer sends a letter to Yahoo! â€œMicrosoft reserves the right to pursue all necessary steps to ensure that Yahoo!â€™s shareholders are provided with the opportunity to realize the value inherent in our proposal.â€
February 13, 2008: Layoff notices are given at Yahoo! Ryan Kuder Twitters the entire event.
April 4, 2008: Rumors begin to appear that Microsoft is deciding to pull the offer.
April 5, 2008: Microsoft sends a letter to Yahoo! stating that they may work out a separate deal with shareholders if a decision isnâ€™t made.
April 7, 2008: Yahoo! Announces their AMP! advertising platform and stated that they want more money from Microsoft.
April 9, 2008: Yahoo! states that they may be interested in an ad outsourcing deal with Google.
April 10, 2008: Rumors appear that News Corp. AOL, and Google all want to arrange deals with Yahoo!
April 12, 2008: Capital Research & Management invests $2 billion more in Yahoo! shares giving them ownership of $6 billion worth of the company.
April 30, 2008: Rumor appears Microsoft increases the amount that theyâ€™re willing to spend.
May 4, 2008: Microsoft walks away from the negotiation table after YahoO! demands too much of a high price for Microsoft.
May 4, 2008: Yahoo! responds by saying that through this experience, Yahoo! emerged as a stronger, more focused company.
May 7, 2008: Yahoo! & Google become more serious about Google Ads appearing on Yahoo!
May 14, 2008: Major Yahoo! shareholder, Carl Icahn steps in and calls the Yahoo! Board irrational.
May 20, 2008: Microsoft makes an offer to buy Yahoo!â€™s Search Advertising Business for an undisclosed amount.
May 23, 2008: Yahoo! Director, Edward Kozel resigns to â€œspend more time with family.â€
May 23, 2008: Yahoo! postpones shareholder meeting for the second time.
May 28, 2008: Jerry Yang claims company isnâ€™t under siege and Microsoft is no longer interested in buying out the whole company at All Things DÂ conference.
May 30, 2008: FTC officially approves Icahnâ€™s large purchases of Yahoo! stock.
June 2, 2008:Â Yahoo!Â court documents state thatÂ Yahoo!Â was planning toÂ turn down a deal with Google one day before the Microsoft bid.
June 3, 2008: Carl Icahn indicates if proxy battle is successful, heâ€™d want Jerry Yang out of CEO position.
June 4, 2008: Yahoo! Board decides annual shareholder meeting date to be held on August 1.Â
Icahn sends Yahoo!Â a letter explaining that he believes Yahoo! CEO, Jerry Yang sabotaged the Microsoft bid.Â Roy Bostock responds to Icahn by saying that Microsoft is no longer interested in a full acquisition.
June 6, 2008: Carl Icahn sends a letter to Roy Bostock with a 5 point plan detailing what a new board would do for Yahoo!Â Yahoo! sends back a quick response to Icahn saying that his letter is “ill-advised.”
 Yahoo! Inc. Press Release: Yahoo! Inc. Statement on Carl Icahn’s Letter of June 6, 2008