MediaFile

Is Yahoo’s Yang toast?

May 6, 2008

steve-case-frowns.jpgLegendary media money manager Gordon Crawford blasted Yahoo Chief Jerry Yang for blowing the Microsoft deal in high profile interviews with the Wall Street Journal and the New York Times.

“I am extremely angry at Jerry Yang and at the so-called independent board,” Crawford told the Times. ”I’m hoping that there is such an outpouring of outrage that the board is embarrassed into revisiting this thing …  but I’m not optimistic about that.”

It may not be wise to aggravate Crawford, portfolio manager for Capital Research Global Investors, a division of Capital Research & Management, which owns 16 percent of Yahoo.

Just ask AllThingsD’s Kara Swisher about how Crawford treated Steve Case in the AOL Time Warner disaster. Within a year, AOL Time Warner Chairman Steve Case resigned.

(Photo: Reuters/Steve Case)

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It’s a matter of strategy. The stocks now are cheaper. Microsoft will bid back with the offer at 33

Posted by John | Report as abusive
 

In what could be a harbinger of a shareholder revolt against its Board of Directors, investors went public with their dismay over the failure of Yahoo! Inc to negotiate successfully a deal with Microsoft Corp. The Wall Street Journal reported on the frustration of some high-profile Yahoo shareholders on Tuesday: “‘I’m extremely disappointed in Jerry Yang,’ said Gordon Crawford, a portfolio manager at Capital Research Global Investors, which owns over 6% of Yahoo’s shares. ‘I think he overplayed a weak hand. And I’m even more disappointed in the independent directors who were not responsive to the needs of independent shareholders,’” The Journal article reported. Many of the shareholders believe that Yang was being unrealistic by demanding that Microsoft offer $37 per share as the price for entering into negotiations. “Some of Yahoo’s major shareholders had by late last week signaled to Yahoo that they were open to a deal around $33 or $34 per share, according to people familiar with the matter,” The Journal article said. In response to these shareholder complaints, Yahoo Chairman Roy J. Bostock told The Journal that Yahoo’s Board of Directors made the right determination and its members stand by their decision.

 

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