Yahoo! is a great company and brand. Last year, when our grassroots shareholder group was formed, we advocated rapid action to turn around the company so that it could stay strong and independent. Although some changes have taken place, including installing Jerry Yang as CEO last June, there have not been enough. As Wall Street lost confidence in the company based on the results and a lack of strategic direction, the stock price drooped below $20. Microsoft has now made a $31 offer for the company. Yahoo!'s board has deliberated and rejected the offer as "massively" under-valuing the company. It thinks the company is better off going it alone versus taking the offer -- even if there is a possibility the stock price craters to $17 or less.
We believe that the Yahoo! board does not have the moral authority to represent our views as shareholders in discussions with Microsoft or any other company who wants to buy Yahoo! At last June's annual meeting, all the Yahoo! directors received a historically significant number of "against" votes from shareholders. The current Yahoo! Chairman received 36% of the votes cast against his re-election to the board. Yet, with the exception of Terry Semel, Yahoo!'s directors are all still serving on the board.
We believe we can do a better job representing our own interests as Yahoo! shareholders, rather than putting our faith in the current Yahoo! board. We have no desire to see Yahoo! continue independently with the current board and management team in place. We believe that is a recipe for a $17 stock price.
Therefore, we will band together as a group and agree to sell our Yahoo! shares to the highest bidder. There is currently an offer on the table from Microsoft for $29 (at Microsoft's current valuation). We view that as a floor bid. We will tender our shares to Microsoft or any other bidder (e.g., AT&T, NBC, News Corp., Comcast, etc.) who makes a better offer than this.
If we remain isolated, disenfranchised shareholders (whether we an individual owning 1 share or we are a large institutional investor owning thousands of shares), we are powerless to control how Yahoo!'s board acts in getting the best possible outcome for us. If we band together, we can control our own destiny.
If you agree, pledge below to add your Yahoo! shares that you own to this "Yahoo! Plan B" Group in order for us to negotiate the highest possible price for our Yahoo! shares. This is an informal pledge (we're not making you sign legal documents), but you should represent that you truly own the Yahoo! shares you say you do and be willing to be contacted to verify this. I or someone else from the "Yahoo! Plan B" Group will contact you later about the best possible price we are able to negotiate from a buyer.
Sphere: Related Content