Carl Icahn increases stake in Yahoo
Activist investor--and member of company's board--has bought up 7 million shares of Yahoo over the course of three days this week.
- Extensive journalism experience in digital media.
Update 10:00 a.m. PST: Added Yahoo's closing price Friday.
Although it seems everyone from Microsoft to analysts to shareholders have lost some interest in Yahoo, at least one person hasn't: Carl Icahn.
Over the course of three days this week, the activist investor bought up nearly 7 million shares of Yahoo, the Associated Press reported Friday. That brings Icahn's stake in the Internet search pioneer to about 75.6 million shares, or 5.5 percent, according to a regulatory filing. Icahn paid an average of $9.92 for each share.
The move comes on the heels of the announcement that Chief Executive Jerry Yang will step down once a replacement for him is found.
Earlier this year, Icahn launched a proxy fight in a bid to take over Yahoo's board. Among his wishes was that Yang step down. The company and Icahn eventually reached an agreement wherein he got a seat on the board, and the number of seats was expanded, with Yahoo appointing two new members from Icahn's slate of candidates. Following the agreement, Yang said that he welcomed Icahn's "fresh perspective."
In recent months, Yahoo shares have fallen, along with the rest of the stock market, and have been hovering lately around $10. That's in contrast to earlier this year, when Microsoft offered $33 a share in a sweetened takeover bid for the company.
Shares of Yahoo closed Friday at $11.51, up 93 cents, or about 9 percent. The stock market was open for a shortened session, following the Thanksgiving holiday.
Last week, Microsoft CEO Steve Ballmer said at the company's annual shareholder meeting: "We are done with all acquisition discussions with Yahoo." He did not discount the idea of a search partnership however.