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CommentMonday, June 2, 2008

Yahoo Rejected $40 Per Share From Microsoft In 2007

Letters unsealed in Yahoo case

1 Comment

Yahoo's fiduciary duty to its shareholders

Yahoo's fiduciary duty to its shareholders doesn't automatically compel it to sell out to Microsoft.  On the contrary, If I held stock in Yahoo, it would be because I was convinced that Yahoo held potential to grow my investment that (say) Microsoft did not.  If I were a Yahoo shareholder, I'd be of two minds about accepting even the very most generous offer for my shares in Yahoo.

I'm not sure that I wouldn't want to "let it ride" - to continue to trust Yang and the current board with my investment rather than take a quick payoff from Gates and Co - or have my investment options curtailed so Carl Icahn can make a quick buck.  That alternative doesn't fill me with confidence, either, I can tell you.   Selling out before Yahoo has reached its maximum earnings potential strikes me as a poor exercise of fiduciary trust.  But that's just me.

I also USE Yahoo.com's services.  I used to use msn.com's services before Gates and Ballmer peeled off many of the things I like about Yahoo that are no longer supported in msn.com.  I also resented necessarily supporting Slate.com by buying into msn.com's services - I think that Slate is a parody of Internet journalism which survives only from regular infusions of cash from the Microsoft empire.  If Yahoo is politicized in the same manner, I won't use it.  It's just that simple.

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