Carl Icahn bought up another 6.8 million shares of Yahoo earlier this week, bringing his total holdings to 75.6 million shares (just north of 5 percent). He paid just under $10 a share, or about a third of what he paid last May when he started building the bulk of his position.
Of course, now he controls three seats on Yahoo’s board, including the one he occupies. So he is personally involved in the search for a new CEO to replace Jerry Yang, and he knows the stock will probably react favorably to the announcement of any new leadership. Why not buy now before the news when the stock is hitting rock bottom? He is obviously in the stock for the long haul now.
I wouldn’t read too much into this move other than that Icahn is in too deep with Yahoo to bail out now. If you are committed to a stock, you buy it when it’s cheap.
It doesn’t mean that Yahoo has found a new CEO. If the search was over and Icahn knew who was going to take over, that might be considered insider information and Icahn wouldn’t be able to trade on that knowledge.
See all
Post
too cheap to pass up. when the stock prices go up he will make a killing
Isn’t anything Icahn does with Yahoo shares technically insider? He sits on the board, and it looks like hes pretty confident with whats happening with Yahoo.
he is just averaging down his cost, so when he sell yahoo for $20 he could still broke even
> Icahn wouldn’t be able to trade on that knowledge.
s/able/allowed. People do get caught doing this, so clearly they don’t immediately realize when they’re crossing the line (see Mark Cuban).
But even without any knowledge at all, this is an obvious time for him to be buying stock, because he can bet on any CEO to drive the price up.
how is techcrunch adding value by essentially posting news that pretty much everyone else has posted already
did twitter post it yet lol
What, you didn’t like my chart?
Yahoo shares are a great buy right now considering they have nowhere to go but up. I actually see a bright future for yahoo once they find their new CEO who can help them define a mission/vision and set them on the right path.
Boris
http://www.thewebwar.com/yahoo
I’m glad he’s finally loading up, but who would have thought it would take this long to get rid of Jerry Yang?!
I think this is a good thing. The more shares he owns, the greater his interest in getting Yahoo back on track.
Yahoo has great business value and it’s current shares value have effect of global financial condition. They are trying to do well by capturing local information base, news, sports, localized content etc in US as well as outside US (e.g. India and China). I personally see a lot of possibilities coming in Yahoo product/Portal base in near future and it shows that if any one who invest in Yahoo now, should get good return on their current investments.
I believe he has put options at $19, so his $25 shares aren’t in such a bad shape. Then he’s already making money with less than $10 shares. Great investor.
who cares abt icahn