Well, don’t accuse Carl Icahn of cutting and running. After losing $1 billion on his massive Yahoo bet–he bought 69 million shares last spring at about $25–Carl Icahn has (figuratively speaking) doubled down.
In the past three days, the raider has bought another 6.7 million shares of Yahoo for about $65 million, bringing his total to 75.6 million shares. At today’s closing price of $10.58, Carl’s stake is worth $800 million, about $900 million less than he paid for his original position. The 76 million shares amount to 5.4% of the company.
Where does Carl have to sell his stake to get out whole? $23 a share. That seems a mighty long way from here.
It’s not impossible that we get back there, though. We still own our (comparatively microscopic) stake in the company, and we’re optimistic that it can be turned around. There’s just too much latent value in the brand and platform to throw in the towel now.
And, in any case, at this price, we’re with Carl: Yahoo’s ridiculously cheap.
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