“Self-Destructive Doomsday Device” Has Turned Into A “Beautiful Friendship”

Posted Jul 31, 2008

“The Microsoft negotiations were just the latest example of the negligence by this board,” stated Eric Jackson, a major Yahoo! shareholder and President of Ironfire Capital. “There is still a lot of anger and frustration among shareholders right now.”

Tomorrow is a big day for Yahoo! Inc. (NASDAQ:YHOO).  It is the day that the search engine company has their annual shareholder meeting.  The shareholders will be able to vote on whether they want to the current Yahoo! Board of Directors to stay or not. 

At last year’s shareholder meeting, Eric Jackson expressed his extreme disapproval of Terry Semel, former CEO of Yahoo!  Six days after the shareholder meeting, Semel stepped down.  Jackson plans a repeat performance this year against Jerry Yang.

“I will not be attending. The proxy fight is over and it will not do shareholders or Yahoo! any good to have the annual meeting turn into a media event for no purpose. Last week, I realized it was impossible to gain enough support from the large institutions to win a majority of the Yahoo! directorships,” stated Carl Icahn, a new Yahoo! Board member.  “A few days ago, I met with both Jerry Yang and Roy Bostock and I believe both gentlemen genuinely wish that we will be able to work together to enhance value.  While we still disagree on many points, I have great hope ‘this will be the beginning of a beautiful friendship.'”

Carl Icahn writes that he hopes this will be a beautiful friendship two months after writing:
“Until now I naively believed that self-destructive doomsday machines were fictional devices found only in James Bond movies. I never believed that anyone would actually create and activate one in real life. I guess I never knew about Yang and the Yahoo Board.”

Related Links:
1. Eric Jackson’s blog
2. Carl Icahn’s blog
3. Associated Press