Texas Startup Blog written by Alexander Muse

Dallas’ Mark Cuban to join Yahoo’s Board!

May 15, 2008

If Carl Icahn has his way, Mark will be in the cat bird’s seat at his old company. From Carl’s letter:

“During the past week, a number of shareholders have asked me to lead a proxy fight to attempt to remove the current board and to establish a new board which would attempt to negotiate a successful merger with Microsoft, something that in my opinion the current board has completely botched. I believe that a combination between Microsoft and Yahoo is by far the most sensible path for both companies. I have therefore taken the following actions: (1) during the last 10 days, I have purchased approximately 59 million shares and share-equivalents of Yahoo; (2) I have formed a 10-person slate which will stand for election against the current board; and (3) I have sought antitrust clearance from the Federal Trade Commission to acquire up to approximately $2.5 billion worth of Yahoo stock. The biographies of the members of our slate are attached to this letter. A more formal notification is being delivered today to Yahoo under separate cover.”

Proposed directors include: himself, Keith Meister (his number two), Frank Biondi, Lucian Bebcuk, John Chapple, Adam Dell, Edward Meyer, Brian Posner and Robert Shaye.

Any idea what Carl is doing?  I think it is obvious, there is about $472MM laying on the ground that he can pick up (i.e. he has 59 million shares costing around $25 and he can sell them to Microsoft for $33-34 each).  I suspect he has been talking to Microsoft, what do you think?