Carl Icahn increases stake in Yahoo

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.

Carl Icahn has bought up 7 million shares of Yahoo this week.

(Credit: CNET News)

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.

[Mr. Dee]

This guy is hoping for a miracle isn't he?

[hutwarmer]

well, i suppose over the next few months we will see Yahoo torn apart and sold off piece by piece.

[Danthemand]

well you can be sure something is fixing to happen. This guy either sees things happening or makes them happen. I think Hutwarmer's comment is probably the most likely because they are too large and diversified for anyone company to want them.

[rootsmusic]

Doesn't he also hold a significant stake in TWX stock?

[Software Analyst]

Sucks to be Yang.... with wrong move made in the deal and this kind of reputation...he is a bad poker player. Made the wrong call and now everyone dislikes him.

Lesson learned for Yang from his screw up on the deal. Don't be greedy. Now Icahn has the upper hand...

[aka_tripleB]

He only has 5% of the company after spending $700,000,000? He overpaid.

[Joetwopointoh]

The article states he's in it for nearly 7 million not 700 million.

[BlitzBoy1120]

I hope when Yang steps down, an innovative guy (not that Yang wasn't innovative) comes to power, because Yahoo needs something Google isn't getting.

[BlitzBoy1120]

I hope when Yang steps down, an innovative guy (not that Yang wasn't innovative) comes to power, because Yahoo needs something Google isn't getting.

[Seaspray0]

It was either buy stock in yahoo or that dead horse ranch. Tough decision.

[ceehow]

i hate this guy......he wines and complains about the stock price being too low for his liking so he goes out of his way to make sure that the company can't focus on making the product better but instead now has to fight off being taken over repeatedly. maybe if he left well enough alone they would be performing better. if you don't like how the company is performing you SELL your shares, not BUY more!!

[bruceslog]

I think he is privy to the new rumored Microsoft 20 BILLION dollar buyout of Yahoo's search.
Yahoo will dissolve without it's search, but the lil prick will have increased His bank balance... at everyone else's expense, of course.