Is Icahn Skipping Yahoo Annual Meeting so Shareholders Can Do His Dirty Work?

Friday, August 1st, 2008 by Andy Beal

Is Icahn Skipping Yahoo Annual Meeting so Shareholders Can Do His Dirty Work?

UPDATE: The votes are in and there are no surprises from the annual meeting.

On the surface, it appears newly appointed Yahoo board member Carl Icahn, is staying away from the company’s annual shareholder meeting for the good of the company.

On his blog, Icahn states:

I will not be attending. The proxy fight is over and it will not do shareholders or Yahoo! any good to have the annual meeting turn into a media event for no purpose.

It’s those words that have the rest of the media praising Icahn for knowing the difference between “activist shareholder” and troublemaker. But this Pilgrim’s not convinced Icahn’s motives are all selfless.

The AP is reporting that the Yahoo shareholder meeting will likely turn ugly, as unhappy shareholders voice their concern over not selling to Microsoft.

“The Microsoft negotiations were just the latest example of the negligence by this board,” said Eric Jackson, a Yahoo shareholder who plans to confront management during Friday’s meeting. “There is still a lot of anger and frustration among shareholders right now.”

While I’d like to think that Icahn’s staying away for the good of Yahoo, I suspect that two other motives at least play a supporting role in his decision.

If the Yahoo board is going to be attacked, Icahn doesn’t want to have his name associated with it.
If shareholders push for Jerry Yang to step down, it would be hard for Carl Icahn to stand there and support the Yahoo CEO. While Icahn’s trying to be nice to Yang, he states “we still disagree on many points.”

I think the Yahoo shareholder meeting could get ugly. Carl Icahn is a smart guy. He knows that the last place he needs to be is in attendance. Better to observe from afar, and let Yahoo’s angry shareholders do his dirty work.

What do you think? Am I on point, or missing the mark?

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9 comments on “Is Icahn Skipping Yahoo Annual Meeting so Shareholders Can Do His Dirty Work?”

Nicole Price Says:

August 1st, 2008 at 10:47 am

You are bang on. Icahn can afford to wait and watch others do the dirty work for him.

Nicole Price’s last blog post..Custom T-shirts
Ashley Says:

August 1st, 2008 at 1:14 pm

Nicole I entirely agree with you. Waiting is a perfect technique
Dr Marketing Says:

August 1st, 2008 at 4:38 pm

You are probably right but there is so much more we don’t know about. Like two sides to the story
Dr Marketing’s last blog post..How AdSense vigilantes earn money
Blue SEO Says:

August 1st, 2008 at 7:42 pm

Yeah, I would have to agree with what you are saying on this one. He is smart and doesn’t want to get caught in the crossfire on this one. There are going to be tempers flaring, and Jerry Yang’s days may be numbered… I just hope they somehow withstand the downfall and put the company back in the game and competing.
Tiffany Says:

August 2nd, 2008 at 7:00 am

That’s a very deep analizes…But you are maybe right I think. He is a smart guy.
Web Marketing Man Says:

August 2nd, 2008 at 8:43 am

Discretion taking the better over valour. A classic example. This guy knows how to duck!
Erik Says:

August 2nd, 2008 at 1:28 pm

Blue SEO>> I agree, Yang is on his way out and if the rest of the shareholders/board oust him, it doesn’t look like Icahn is going crazy. Instead, he’ll be able to come in and make his next move. Selling to microsoft.

Erik’s last blog post..Wordpress User Video Upload Script as a PHP Consultant
Goran Web Design Says:

August 3rd, 2008 at 6:48 am

@Nicole

You are spot on, well said.
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