Carl Icahn apparently isn't happy with the latest talks between Microsoft and Yahoo, and it looks like the financier is using proxies to threaten to push Yahoo into Google's arms.
Dane Hamilton at Reuters is reporting that Icahn, who holds 9 million shares and options for 49 million more, could attempt to scuttle a deal between Microsoft and Yahoo if it falls short of a complete merger.
"Microsoft is trying to get the milk without buying the cow, and if you look at Icahn's history, he has never been used that way," a person described as "familiar with the financier's thinking" tells Hamilton. "He does not want to see Yahoo pushed into some joint venture with Microsoft and is not going to be used to push Yahoo into it."
But could Icahn's eagerness to have a deal now be scuttling Microsoft's long-term deal plans? UBS analysts are floating the idea that a more limited partnership deal between Microsoft Yahoo could be a a stepping stone to an acquisition. The idea is that since Yahoo announced its refusal to go all the way with Microsoft when it first proposed the deal, perhaps it might relent after a bit of a courtship.
Microsoft move unlikely to win Icahn favor: source [Reuters]
Posted by big r , May 19, 2008 12:55PM
I got a delivery of a cheesesteak from DB today! even though it was originally intended for someone else, i'm still a winner. thanks DB. Hope this didnt break the bank.
Posted by girl , May 19, 2008 12:57PM
hahah way to go big r!
(ps you missed happy hour)
Posted by big r , May 19, 2008 1:01PM
@ girl - yea i figured i did. i got kind of busy last week and couldnt keep up w the DB comments re happy hour. i'll have to be more on my game when round III talks begin.
Posted by onetwo , May 19, 2008 1:10PM
"The idea is that since
Yahoo announced its refusal to go all the way with Microsoft when it first proposed the deal, perhaps it might relent after a bit of a courtship."
...so oretty much they're playing an expensive game of "just the tip"...just to see how it feels.
Posted by guest , May 19, 2008 1:23PM
spot on onetwo. i don't see how this gets them any closer to the orginal deal. sounds like they're just trying to appease Icahn and stall.
Posted by guest , May 19, 2008 1:26PM
When does his options expire?
Posted by golden girl , May 19, 2008 1:34PM
@onetwo - c'mon, just let it happen.
Posted by Random Banker , May 19, 2008 1:50PM
@1:23 Wrong, we all know the game 1-2 is referring to ends up with everyone getting exactly what they are aiming for on the night in question, and then frantic calls to planned parent hood in the immediate future. Yahoo can't get a little bit pregnant, with a deal "just for search". Once they're in bed with the beastmaster, THEY'RE IN BED WITH THE BEASTMASTER
Posted by Random Banker , May 19, 2008 1:53PM
P.S. girl are you cool with 1-2 putting your personal life for all to see in the dealbreaker comments section?
Posted by girl , May 19, 2008 2:05PM
@ RB
if he gets his kicks attributing sexual references to possible mergers who am I to stop him? Certainly has nothing to do with me.
Posted by Anal_yst , May 19, 2008 2:14PM
Does anyone underwrite some sort of structured "clusterf&ck" notes on any of the companies involved?
Posted by Random Banker , May 19, 2008 2:23PM
Well one wonders why that analogy was so close at hand....
Posted by guest , May 19, 2008 2:30PM
"Microsoft is trying to get the milk without buying the cow, and if you look at Icahn's history, he has never been used that way."
Neither has my wife. Hey-o!
Posted by To The Hilt , May 19, 2008 3:21PM
@ Anal_yst: "structured clusterf*ck notes"
I like it.
@2:30: how sure are you of that?
Posted by onetwo , May 19, 2008 4:47PM
@RB: Why was the analogy so close at hand? It's called Wedding Crashers. Decent movie. I highly recommend it, even if you aren't "one of us" capitalist pigs with no hearts.