TW Shareholder Seeks to Block Google

GHoosdumGHoosdum Icrontian
edited December 2005 in Science & Tech
Carl Icahn, a Time Warner stockholder, seeks to block Google's purchase of 5% of Time Warner stock, on the grounds that the purchase might prevent one of Google's rivals from merging with AOL.
In a letter to Time Warner's board of directors, Icahn said that the company appeared to be on the verge of a "disastrous decision" following reports it is in talks to sell a 5 percent stake of its AOL Internet unit to Google Inc..

Icahn, whose group has a 3.1 percent stake in Time Warner, said he was concerned a Google pact may preclude a merger or other type of deal with the likes of eBay Inc., Yahoo Inc., IAC/InterActiveCorp, or Microsoft Corp..

"Like all shareholders, I am not opposed to Time Warner entering into an AOL transaction that creates long-term value," Icahn wrote. "However, I am deeply concerned that the Time Warner Board may be on the verge of making a disastrous decision concerning an agreement with Google," he said.

The opposition by Icahn to a stepped-up Web search and advertising alliance between AOL-Google slowed a renewed surge in the price of Google shares on Monday, which hit a new intraday record high of $446.21.
Apparently he thinks it would be good for (the internet, his wallet - choose one of the above) if Google lost a huge chunk of its revenue stream?

Source: Reuters

Comments

  • CammanCamman NEW! England Icrontian
    edited December 2005
    the "Good guy" of silicon valley that everyone likes to peg Google as will end with this AOL/Google deal. Part of the deal puts AOL Advertising in preferred spots in Google search and advertising deals, what a bunch of bull
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