Icahn Takes on Yahoo Board

Various big Yahoo shareholders have expressed their displeasure with Yahoo's board and management for, in their view, not negotiating in good faith with Microsoft and causing the talks to collapse. Yahoo formally rejected Microsoft's original offer on Feb. 11, saying it undervalued the company.

On Monday, May 5, the first day of trading after Microsoft's offer withdrawal, Yahoo's stock lost significant value, closing down 15 percent at $24.37, after dropping as low as $22.97 during the day.

Last week, Yahoo co-founder and CEO Jerry Yang and other top Yahoo executives tried to shift the blame to Microsoft, alleging that the $33-per-share offer was never put in writing and that Microsoft unexpectedly walked away at a time when Yahoo was still open to negotiating.

Meanwhile, a much-publicized deal in which Yahoo would outsource part of its search advertising business to Google -- the possibility of which Microsoft CEO Steve Ballmer cited as a major reason to withdraw the offer -- has yet to be finalized, and, according to recent anonymously sourced press reports, has lost steam.

Icahn is well-known for taking to task the CEOs of companies he invests in when he feels they aren't doing a good job of delivering shareholder value.

Icahn's slate is made up of himself -- chairman and a director of privately held Starfire Holding, and chairman and a director of various Starfire subsidiaries -- and the following people:

-- Lucian A. Bebchuk, the William J. Friedman and Alicia Townsend Friedman Professor of Law, Economics, and Finance, and director of the Program on Corporate Governance at Harvard Law School.


-- Frank J. Biondi, Jr., senior managing director of WaterView Advisors, an investment advisor organization and a former chairman and chief executive officer of Universal Studios.

-- John H. Chapple, president of Hawkeye Investments, a privately owned equity firm investing primarily in telecommunications and real estate ventures.

-- Mark Cuban, Internet entrepreneur and majority and controlling owner of the NBA's team Dallas Mavericks.

-- Adam Dell, managing general partner of Impact Venture Partners, a venture capital firm focused on information technology investments.

-- Keith A. Meister, principal executive officer and vice chairman of the board of Icahn Enterprises and a managing director of Icahn Capital, the entity through which Icahn manages third-party private investment funds.

-- Edward H. Meyer, chairman, CEO and chief investment officer of Ocean Road Advisors, an investment management company.

-- Brian S. Posner, a private investor who from 2005 through March 2008 served as CEO and co-chief investment officer of ClearBridge Advisors, an asset management company.

-- Robert K. Shaye, co-chairman and co-CEO of New Line Cinema.

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