Entry # 19 20600331

My Opinion/Summary:

Yahoo has experienced decline and stagnation over the past couple of years. Icahn, wants to replace the current board of directors and put into place himself and others. This is a good idea because Yahoo has been a decline for the past few years. To add to this problem, Google a competitor has grew tremendously. I believe this is a sound strategic plan because the current board has done nothing or could do nothing to change the current outcome, it may be time to change the board. If something is not working, it is never a good idea to continue on that path and hope that it will somehow find the right answer. However, I do not believe that Icahn’s actions though well intended for Yahoo were the right course of action. A more level-headed cooled approach may appeal to more investors in Yahoo to make the switch from the current board to the new one. Currently, Yahoo has posted an injunction to try and stop Icahn’s plan.


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ReutersIcahn trashes Yahoo for failed growth plan
Monday June 9, 2:34 pm ET

NEW YORK (Reuters) - Carl Icahn on Monday fired off another letter savaging the board and management of Yahoo Inc (NasdaqGS:YHOO - News) for failing in its growth plan, the latest volley in an escalating proxy battle the billionaire investor has staged at the Internet company.
Icahn -- who is seeking to replace the board of Yahoo with his own nominees, including himself -- took aim at Yahoo CEO Jerry Yang, saying he has failed to come up with a suitable plan to beat back rivals including Google Inc (NasdaqGS:GOOG - News).
"While Google's income from operations grew 59 percent per year for the last two years, Yahoo's income from operations shrank 21 percent," Icahn said in his latest salvo to Yahoo Chairman Roy Bostock.
"What was the board doing over this period? Where was their great plan? Why did you permit Google to leave you in the dust?" Icahn asked.
Later on Monday, Yahoo filed its proxy statement for its August 1 shareholder meeting with the U.S. Securities and Exchange Commission.
The Web company urged shareholders to reelect the current board of directors, including Bostock and Yang, and reject Icahn's slate.
Yahoo also said in the filing it expects to foot $12 million in proxy solicitation costs.
Shares of Yahoo were down 6 cents at $26.38 in afternoon trading on the Nasdaq.
(Reporting by Dane Hamilton and Anupreeta Das, editing by Mark Porter and Gerald E. McCormick)