Where does that leave Icahn with Yahoo

So is it Googhoo? Yahoogle? GoogleY? However you want to say it, Yahoo seems to continue to drive the stake in their hearts. Either Jerry Yang has hit a Yahoo midlife crisis or he basically said “If I can’t have it, no one can!”.

This mess ain’t over, either. Just because Microsoft has said they don’t want Yahoo anymore doesn’t mean Carl Icahn is going to back down. Yahoo is falling apart. The rats are leaving the ship. All the trees are still. Pick your metaphor.

First - is the Yahoo Google deal going to hurt or help Yahoo. Right now it’s hurting. Yahoo stock dropped 15% after the deal was made. Yahoo is choosing a bed to sleep in, instead of saying “I’ll take anything”. Being exclusive is nice, but if Google wants to drop Yahoo like a bad habit, they will.

Second - Let’s say that Microsoft is truely out of the hunt. Let’s say that Carl Icahn drops his proxy on July 3rd. (it’s hypothetical) If the waters finally calm down, what does Yahoo have?

(Rod Serling steps out): Picture yourself in a room on the top floor of a house of cards. Your objective is to carefully navigate the house and get out before it collapses upon itself. Here we have Jerry Yang - 39 year old CEO of Yahoo who’s put himself into a predicament he cannot possibly escape from. Add to his problems a bunch of possible disasters that he himself put into place to thwart Microsoft. Now it’s time to get out of the room… and enter…… (well, you get the rest. If you don’t, Google “Rod Serling”).

This is the very reason why Carl Icahn has to continue his fight and do some corporate raiding. I would support him 100%. I don’t have any stock in Yahoo, but I do have Stake in Yahoo. Lots of small companies have stake in Yahoo. Whether it’s email, webpages or some other Yahoo service, if the company falls hard, they all get affected.

Just like the new iPhone predictions, we’re all going to sit on the edge of our seats and see what happens at the proxy battle. I would expect some major changes coming down the pike. And just because Microsoft said “We’re out” doesn’t really mean that they are out. After all, this is the second time Microsoft tried for Yahoo. Business is business and the reality is Yahoo’s site stats are still in the top 5. Who wouldn’t want to take that over?