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Icahn says Yahoo-Google Deal Better than Microsoft’s Buy Out Deal

A few days after the Yahoo-Google deal was finalized, Bilionnaire Carl Icahn commented a rather unexpected remark especially coming from somebody who was opposing Yahoo’s decision not to except the Microsoft bid. What’s even worst, that someone has even waged a proxy battle to overthrow the current Yahoo board.

But of course, everybody has the right to have a change of heart, especially if the issue warrants some merit. In an interview with Reuters, Mr. Icahn said:

“While the Google deal is not the same as an offer of $34.375 per share for Yahoo, I am continuing to study it, and it might have some merit.”

Mr. Icahn further commented that a Google deal is preferable than having Microsoft taking control of Yahoo’s search operations. On thing that Mr. Icahn may have liked about the Yahoo-Google deal was the provision on “change of control” whereby Google can always walk away from the deal if Yahoo is acquired by another company.

What Mr. Icahn didn’t mention during the interview is whether he will still pushed through with the proxy battle or let the Yahoo-Google deal run its course. But given the conditions of the deal and Google’s track record on generating revenues through online advertising, I think that it would be best for Mr. Icahn to let the deal run its due course for a moment and see whether it will be favorable to his stake in Yahoo. After all, he might be in to all of these to protect his investment, right?

 Icahn says Yahoo Google Deal Better than Microsofts Buy Out Deal
Arnold Zafra writes daily on the announcements by Google, Ask.com, Yahoo & MSN along with how these announcements effect web publishers. He is currently building three niche blogs covering iPad News, Google Android Phones and E-Book Readers.
 Icahn says Yahoo Google Deal Better than Microsofts Buy Out Deal

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