Yahoo! and Microsoft – Hollywood Beef

In today’s age of considerably publicized feuds, the increasing tension between Yahoo founders and Microsoft has been quite interesting to say the least. A battle between business tyrants, both firms represent billions of dollars raging war on a corporate landscape.

The Particulars

In a letter to shareholders, Yahoo! brass Jerry Yang and Roy Bostock criticized Microsoft and their collaboration with billionaire Carl Icahn. Inside the letter Yang and Bostock both accused Icahn and Microsoft for not standing powerful on particular troubles and playing a tactical game with the firm with respect to the media. Yang feels that the public showing of Microsoft and Icahn’s partnership is done in order to undermine the value and assets of Yahoo! Carl Icahn is a crucial investor of Yahoo! and controls about 5 percent of the firm which equals out to 70 millions share.

Microsoft first publicly announced their partnership with Carl Icahn on July 7th, 2008. Microsoft revealed that the collaboration with Icahn was a way to get rid of Yahoo! co-founder Jerry Yang and to re-attempt a takeover of the organization. Icahn had even issued a letter to other shareholders that the takeover of Yahoo! by Microsoft would be quite useful to them and even Microsoft shareholders. Icahn went on to state that:

“Our business is now moving toward a precipice. It is at the moment losing marketplace share in its ‘search’ function our existing board has failed to bring in a talented and knowledgeable CEO to replace Jerry Yang and return Jerry to his role as Chief Yahoo!, and currently it is witnessing a meaningful exodus of talent.”

Microsoft has been extremely pleased by Icahn’s assistance and stated that they would only be interested in completing a merger with Yahoo! if the existing board on Yahoo! was replaced. Despite the reality that the Microsoft deal has been very much publicized, it is widely known that Microsoft is not the only company that Yahoo! has been in talks with.

Early Yahoo! Background

Yahoo! an internet and multimedia giant was founded by Stanford grads Jerry Yang and David Filo in 1994 and has given that been one particular of the leading corporations inside the US and abroad with a value of more than billions and billions of dollars. Recent statistics show that the company receives about three.4 billion page views a day and is the second most visited site in the US.

Initially, Yahoo! was named, “Jerry’s Guide to the Globe Wide Internet.” It has been stated that the name which the firm has eventually became to be recognized as was taken from a novel by Jonathan Swift titled Gulliver’s travel that was published in 1726. The title of the book is officially known as “Travels into Many Remote Nations of the Globe, in 4 Parts. By Lemuel Gulliver, Initial a Surgeon, and then a Captain of many Ships.” Considered a classic, the book is a satire on human nature.

It is right here, that the now well-known word: Yahoo, was taken and adopted to a special and in 1994 a hungry and blooming upstart organization. Within the Merriam – Webster dictionary the word yahoo is defined as a, “boorish, crass, or stupid person.” It is with this identity that this business rose up from the ground and become a towering figure within the realm of international enterprise.

Cash Equals Drama

As one particular singer stated, “Mo’ money, Mo’ troubles”, and Yahoo is one company that has not been immune to such scenarios and the current plot of Icahn to rid of the organizations board is just another episode of Yahoo!’s most fascinating and intriguing diary.

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