Following the collapse of the Microsoft buyout of Yahoo! there were a lot of puzzled faces walking the streets of Wall. Likely no more puzzled than the faces of the investors in Yahoo! who stood to make a pretty premium over the now deflated stock price. Some notable investors, however, aren't taking this sitting down, standing-up or any other way.
Carl Icahn, the activist investor, has brought together a powerhouse team that he's threatening to run for Yahoo! board if Jerry Yang doesn't get his act, and team, together and resume talks with the big-M. The latest name added to Mr. Icahn's roster is none other than Mark Cuban who previously sold his video start-up company to Yahoo for a cool $5.7 billion in stock - yes, stock - making him a considerable addition.
With prices, as at the writing of this post, sitting at $27.5 per share, shareholders have see more than 15% of their possible take slip through their hands when Mr. Yang walked away form Microsoft's offer of more than $31.
Mark Cuban, irrespective of his financial might as an investor, is a powerful force in bringing further attention on the apparent missed opportunity at Yahoo! With consensus now that Microsoft and Mr. Ballmer have moved-on to bigger an better things, more attention may be too late. That said, there is equally strong consensus that the deal makes as much sense today as it did weeks ago and that Microsoft could be arm-twisted to returning to the table should it be greeted by a board that is more welcoming. With any deal this large, there is little doubt that Microsoft spent months planning its strategy and ultimate attack. While certainly not weeping at the loss of that investment, I for one would feel confident in saying that its management would welcome the opportunity to feel vindicated.
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