Takeover-wary Yahoo sets stock rights plan

[grnidone]

Internet portal Yahoo! Inc., having seen its stock crash over the past year, adopted a stockholder rights plan last week aimed at fending off hostile takeovers.

...

The company said it will distribute rights to shareholders as of March 20. Each right will entitle a stockholder to buy preferred stock that carries increased voting rights. The rights generally will be exercisable only if a person or group acquires beneficial ownership of 15% or more of Yahoo common stock or launches a tender or exchange offer for Yahoo shares.

[dailynews.yahoo.com...]

[rcjordan]

To me, adopting a "poison pill" really indicates that a potentially hostile takeover is in play on the fringes. I've haven't followed through on the financial research, but headlines in the newswires indicated that the market took a dim view of this and the stock tumbled more than 10% on the news.

[john316]

Yahoo! management setting up the poison pill indicates that they knew their stock was going to tank and in an ego/fear driven moment, they decided to cover themselves.

They are one of the few companies around who still exist by grace. They have probably caused more consternation for web professionals than any other "portal", and of course now they think (in their arrogance) that those same folks will gladly pay them money.

I'm tired of hearing how "overworked" the editors are, at 200 bucks a crack to review a web site, you should have the best, well rested editors on the planet.

Customers pay for service and Yahoo!'s grace period is rapidly coming to an end. I don't care how good you are, if you treat your core clients like ninnies, you won't win long term.

[rcjordan]

The bear has it now. Down another 12% [finance.yahoo.com]