Jerry’s sweet victory, what next for Yahoo?
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After a tumultous 6 months, it is sweet victory for Jerry Yang, CEO of Yahoo! Inc. In the annual meeting of stockholders held on 1st of Augist, Yahoo stockholders re-elected all of Yahoo!’s nominees to the Board of Directors.
Roy Bostock, Chairman of Yahoo!, said, “We now look forward to executing on our strategy and continuing to build our great Company. Last year, Yahoo!’s Board of Directors and management took steps to thoroughly reexamine the Company’s direction and to improve the Company’s performance. Since then Yahoo! has made significant strides in executing on its strategy, performing particularly well in light of the challenging circumstances of the past six months. Our Board looks forward to continuing to work with management to maximize value for all stockholders.”
Yahoo’s stock is however back to historic low’s, close to the stock price before Microsoft’s offer to acquire the company, and is currently trading at $19.80. In this battle for control of the company, it’s the average shareholder that seems to have lost. The real winner is Google, that is now running it’s ads on Yahoo’s properties as per the joint venture between the two companies amidst the takeover saga. Yahoo may now be forced to seek other partners as it struggles to compete with Google, the current leader in online search. The likely candidates seems to be AOL/Ask.
Here’s the timeline of significant events in the last 6 months
- On Feb 1st, Microsoft made a hostile takeover bid to acquire Yahoo for $31 a share representing a total equity value of approximately $44.6 billion. Yahoo’s stock is trading at historic lows at $19 a share. Stock jumps close to $30 on the news. 02/01
- Yahoo’s CEO Jerry Yang feels that the offer undervalued Yahoo and negotiates with Microsoft for a minimum of $37 a share for the company. Microsoft’s CEO, Steve Balmer, communicates to Yahoo in a public release letter that Microsoft is withdrawing the offer. 05/03
- Carl Icahn, a majority stake holder in Yahoo is not happy and wants Yahoo to rengage with Microsoft for selling part or whole of the company, lest Yahoo want a proxy fight in the August 1st shareholder meeting. Yahoo meanwhile goes and inks a deal with Google, Microsoft’s arch rival making it harder for Microsoft to acquire the company. 06/12
- Icahn meanwhile enters into an alliance with Microsoft threatning to get rid of Yahoo’s current board in the August shareholders meeting and subsequently enter into a deal with Microsoft with it’s own board. Yahoo rejects the proposal deeming it unfit for the company’s future. - 07/13
- As a proxy fight in the August sharehoolder’s meeting is now inevitable, Jerry Yang and Yahoo’s board settle with Icahn offering him 3 out of the 9 board seats in the upcoming board re-election. In return Carl Icahn agrees to work with Yahoo - 07/21
- In the annual meeting of shareholder’s, Yahoo’s board and Jerry Yang have sweet victory as all the nominees of the Yahoo board get re-elected. 08/01
