Yahoo! Inc Shareholders Go Public with Their Grievances Over Failed Deal

(NewsVisual, powered by IntellectSpace) -- In what could be a harbinger of a shareholder revolt against its Board of Directors, investors went public with their dismay over the failure of Yahoo! Inc (NASDAQ: YHOO) to negotiate successfully a deal with Microsoft Corp (NASDAQ: MSFT).

The Wall Street Journal reported on the frustration of some high-profile Yahoo shareholders on Tuesday:

"'I'm extremely disappointed in [Yahoo President] Jerry Yang,' said Gordon Crawford, a portfolio manager at Capital Research Global Investors, which owns over 6% of Yahoo's shares. 'I think he overplayed a weak hand. And I'm even more disappointed in the independent directors who were not responsive to the needs of independent shareholders,'" The Journal article reported.

Many of the shareholders believe that Yang was being unrealistic by demanding that Microsoft offer $37 per share as the price for entering into negotiations.

"Some of Yahoo's major shareholders had by late last week signaled to Yahoo that they were open to a deal around $33 or $34 per share, according to people familiar with the matter," The Journal article said.

In response to these shareholder complaints, Yahoo Chairman Roy J. Bostock told The Journal that Yahoo’s Board of Directors made the right determination and its members stand by their decision.

NewsVisual created an IntellectSpace Knowledge Map of Yahoo’s Directors that indicates that Mr. Bostock has very strong board room experience.

For example, the Map shows that Mr. Bostock also currently serves as the Chairman of the Board of Northwest Airlines Corp and as a Director for Morgan Stanley.

Given the fact that Northwest recently merged with Delta, it’s obvious that Mr. Bostock is no novice when it comes to being experienced with high-stake corporate deals, meaning that his judgment cannot be easily dismissed, especially since his experience with Morgan Stanley would give him keen financial insights as well.

Click here for a fuller and an interactive version of this IntellectSpace Knowledge Map that illustrates the business connections of Yahoo’s Board of Directors .

(Note: the information contained and presented in Knowledge Maps is public information from the Securities and Exchange Commission of the United States of America).