Icahn Boosts Yahoo Stake As Firm Seeks New CEO

Friday, 28 Nov 2008 | 12:05 PM ET

In a move likely to fuel speculation over Yahoo's search for a new chief executive, activist investor Carl Icahn has bought up close to 7 million additional shares of the Internet company, according to regulatory filings.


Icahn, a billionaire hedge-fund manager who threatened to oust Yahoo's board this summer after it rejected a deal with Microsoft , snapped up about $67 million worth of shares over three days this week, according to a filing with the Securities and Exchange Commission.

Icahn bought 6.8 million shares for an average of $9.92 each in three batches from Monday through Wednesday, bringing his total stake to 75.6 million, or nearly 5.5 percent of the company, according to the filing made Wednesday.

Icahn Raises Yahoo Stake
Carl Icahn increases his stake in Yahoo! to 75.6M shares, reports CNBC's David Faber

In his original $1.5 billion investment in Yahoo, Icahn paid an average of about $25 dollars per share.

For more on Icahn boosting his stake in Yahoo, see the accompanying video.

Yahoo is looking for a new chief executive after co-founder Jerry Yang said earlier this month that he will step down as soon as the board finds a successor.

Icahn has been among the loudest voices arguing for a new direction at Yahoo.

He threatened to nominate a new slate of directors after the Sunnyvale, Calif., company rejected a $47.5 billion takeover offer from Microsoft this summer.

Yahoo gave him a seat on its board and two other slots for members of his choosing.

Microsoft head Steven A. Ballmer, after making two unsuccessful bids, now says he isn't interested in buying the whole company, though he has expressed interest in the search business.

  Price   Change %Change


Contact Technology


    Get the best of CNBC in your inbox

    › Learn More
  • Matt Hunter is the senior technology editor at CNBC.com.

  • Cadie Thompson is a tech reporter for the Enterprise Team for CNBC.com.

  • Working from Los Angeles, Boorstin is CNBC's media and entertainment reporter and editor of CNBC.com's Media Money section.

  • Jon Fortt is an on-air editor. He covers the companies, start-ups, and trends that are driving innovation in the industry.

  • Lipton is CNBC's technology correspondent, working from CNBC's Silicon Valley bureau.

  • Mark is CNBC's Silicon Valley/San Francisco Bureau Chief covering technology and digital media.