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Yahoo Says Icahn 'Will Destroy Stockholder Value'

The company told shareholders that Icahn and Microsoft want to serve their own "narrow special interests, clearly not your interests."
It said Microsoft either hasn't prioritized its online strategies or is more interested in "destabilizing a key competitor to enhance its competitive position" or buy Yahoo for less than the company is worth.

Representatives for Icahn were not immediately available for comment. A representative for Microsoft said the company had no immediate comment.

The attacks come after Icahn issued a press release (PDF) telling Yahoo stockholders that he has never seen a company distort and twist the facts the way Yahoo has. He said his latest proposal would give stockholders $16.25 per share and guarantee at least $2.3 billion in revenue from search. Icahn provided some details of a proposal from Microsoft, and said Yahoo mischaracterized it while trying to ensure the current board remains. He also insisted that his interests are aligned with other shareholders, not Microsoft.

Microsoft also issued a statement saying Yahoo's communications contained several inaccuracies.

Bostock and Yang insisted that Yahoo's board has been consistent and clear while implementing changes to increase value. They said the board wants to sell the whole company to Microsoft for $33 per share, or more if Microsoft can provide certainty of value and closing. They said they would sell search only to Microsoft if the price is fair and if Microsoft removes operational risks associated with separating search and display. Finally, they said they would consider a potential spin-off of Yahoo's Asia assets to return cash to stockholders.

They said that strategy changes already underway could result in double-digit growth in cash flow.