Top News

Carl Icahn leads shareholder revolt against Yahoo; seeks removal of Jerry Yang

Billionaire investor and Yahoo shareholder Carl Icahn, who owns 50 million Yahoo shares, is leading a shareholder revolt to oust Yahoo CEO Jerry Yang and the entire board of the company.

In an interview with Wall Street Journal, Carl Icahn pushed for the removal of Jerry Yang as Yahoo chief executive and called his actions deceitful after talks with Microsoft over the proposed Yahoo buyout fell through recently.

Following the interview, Carl Icahn has written an open letter to the Yahoo board accusing Jerry Yang and the board of deliberately sabotaging the deal.

Billionaire investor and Yahoo shareholder Carl Icahn, who owns 50 million Yahoo shares, is leading a shareholder revolt to oust Yahoo CEO Jerry Yang and the entire board of the company.

In an interview with Wall Street Journal, Carl Icahn pushed for the removal of Jerry Yang as Yahoo chief executive and called his actions deceitful after talks with Microsoft over the proposed Yahoo buyout fell through recently.

Following the interview, Carl Icahn has written an open letter to the Yahoo board accusing Jerry Yang and the board of deliberately sabotaging the deal.

“I am amazed at the length Jerry Yang and the Yahoo board have gone to in order to entrench their positions and keep shareholders from deciding if they wished to sell to Microsoft,” Carl Icahn has written in the open letter.

The letter emphatically tirades against a controversial severance plan that Yahoo had proposed to Microsoft and which is believed to be the key reason for the failure of the deal.

“Even more deceitful are Yahoo’s actions toward its own employees, for whom you claimed to have set up the ‘plan’. Management neglected to mention to these same employees that Microsoft in its proposals had earmarked $1.5 billion of retention incentives (representing over $100,000 per employee) meant to allay any employee concerns,” the letter states.

Responding to the Carl Icahn’s letter, Yahoo president Roy Bostock has also issued an open letter in which Bostock has refuted the allegations made towards the company. “Conspicuously absent from your letter is any credible plan for Yahoo other than a repetition of your insistence that the company should sell itself to Microsoft,” Bostock wrote.

“Indeed, your stated view that ‘the only way to salvage Yahoo in the long if not short run is to merge with Microsoft’ demonstrates that you have no other plan and causes one to wonder what exactly would happen to our company if you and your nominees were to take control of Yahoo,” Roy Bostock added.

(Source: NYTimes, Reuters, PaidContent, PC)

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Close