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T. Boone Pickens Loses Shirt on $250M Yahoo Bet

Posted Jul 29, 2008 03:59pm EDT by Henry Blodget in Investing, Internet, Newsmakers, Commodities

From Silicon Alley Insider, July 29, 2008:

T. Boone Pickens recently revealed his (dubious) secret to investing: Just do whatever Carl Icahn does. Unfortunately, when it came to the 10 million shares T. Boone scarfed up of Yahoo, the strategy backfired. T. Boone has now sold all his Yahoo stock, at what appears to be at least a $50 million loss.

T. Boone's not blaming his buddy Carl, though. On the contrary, he blames (who else?) Yahoo management, who he describes as "pathetic." In fact, we hear a new word has entered the lexicon of late, especially in hedge-fund conference rooms. When pressed to explain why he just lost his shirt on this one, we imagine T. Boone is saying the same thing some of his other raider buddies are: "We got Yanged."

(Some consolation for T. Boone: He's not down nearly as much as Carl Icahn. By our estimation, the legendary "agitator" is now looking at about $350 million in paper losses on his 70 million shares. Sure hope that shareholder meeting goes well.)

See Also: T. Boone Pickens: Why I Bought $250 Million of Yahoo

50 Comments

- Tuesday July 29, 2008 10:10PM EDT

honestly i am not too thrilled with Icahn's investing style....lets look at two of his investment choices...1)yahoo and 2) Adventrx pharmaceuticals..not only does Icahn own several hundred thousand shares for himself, but his Icahn management also owns several million shares!! Both these stock performers are trading at all time lows and frankly have done nothing to increase shareholder value.

- Tuesday July 29, 2008 10:13PM EDT

honestly i am not too thrilled with Icahn's investing style....lets look at two of his investment choices...1)yahoo and 2) Adventrx pharmaceuticals..not only does Icahn own several hundred thousand shares for himself, but his Icahn management also owns several million shares!! Both these stock performers are trading at all time lows and frankly have done nothing to increase shareholder value.

Cecil
Cecil - Tuesday July 29, 2008 10:56PM EDT

some times people can be fooled even the best of us

LeeS
LeeS - Tuesday July 29, 2008 11:20PM EDT

I whole heartedly agree with Rockportclps statement: 'what goes around comes around'. I too lived through and disgustedly watched an 'Ichanism' back in the late 70's/ early 80's when he pretty much ravaged TWA, all at the expense of the employees, in order to feed his own greedy nature. His response at the time--'nothing personal, it's just business'. Well, to our greedy boys (Carl and T. Boone) right back at ya--nothing personal, it's just business.

richard
richard - Wednesday July 30, 2008 12:04AM EDT

Pickens did not need to take such a big loss. Icahn will prevail when Microsoft finally decides that playing the market on the downside set it back several months. When another bidder such as ATT comes in it will be $37.00 cash not stock for Yahoo.

First L
First L - Wednesday July 30, 2008 12:26AM EDT

why isn't anyone interested in the trillions of cu ft of GAS that's there just for the taking. Cars run just fine on if with minor modifications. sure would end pollotion and arab oil problems. Let me know if I have this right. might be a better deal than yahoo.

Yahoo! Finance User
Yahoo! Finance User - Wednesday July 30, 2008 12:30AM EDT

I have been using the internet when Prodigy was among the first portals and I have been using Yahoo daily since Yahoo started. In my opinion, Yahoo is the best internet portal there is for the general public. I really hate to see an inferior player with a deep pocket come and take it away. I don't believe MSFT can or even has the intent to integrate Yahoo with MSN. Matured technology infrastructures with different designs are very difficult to merge. Microsoft probably just wants to eliminate the major competitor in this space. It is a great loss for the consumers if a great service provider disappears this way. It's a different story if a company dies because their products/services are obsolete. Stock speculators sometimes gain and sometimes lose. I have had both spectacular gains and losses, including on Yahoo stocks&options. There is no need to get personal with anyone, including the CEO. If he commits any fraud, he will eventually get his punishment. If you are in the game of speculating, you should know what you are getting yourself into and protect yourself. No body says you can make money on any deal. Knowing that every speculative deal has inherent risks, it's always your own fault when you lose money, simply because you choose to participate. So please don't hold any grudge towards anybody else. Because then you are not only a money loser, you are also disgusting.

Eric
Eric - Wednesday July 30, 2008 01:19AM EDT

I feel your pain jrobertusa on the car dealership, I am in the same business and its terrible right now and I am loosing a lot of friends for lots of years in the business because of the economy. Well I hope business picks up or America is going to become the next Third World Country!!!! NOT JOKING EITHER WAKE UP AMERICA!!!!!!!!!!!!!!!!!!!!!!!!!!

BIGZGUS101
BIGZGUS101 - Wednesday July 30, 2008 02:41AM EDT

You tell me. It could be a way they were conspiring to big corp. to take over little corp; and give you and me less say so...? huh. I think these guys still have something up their sleeve. But will the neo-cheaters win; or will the ones with the brains. Its brains versus brawn I say. Go figure. Do the math really quick; and tell me how often this guy really loses. I smell something fishy. Is Yahoo smart enough to see the damage these guys are doing to the company's value. All things aside... I must reccomend we all hold on; because we can't let Yahoo go to a gut like Icahn who really doesn't even know a whole lot even how it works. Or will he have to put back to the test of his gambling skills on this one. Well, I hope yahoo can stay independent; and work to provide a more enjoyable, easy to use; and more profitable without giving too much control to a board of directors. Remember we are your users. You need us more than we need you. So think about the little guy who just wants what he needs. Instead of a system that tries to decide what he needs. These are crucial times for a business. A few bad moves and it could result in a tailspin for everyone. I don't think many of you even appreciate the chance to read someone elses point of view. You like what the system gives you. And the reason i s you are a lazy cheater type guy who wants something for nothing. Come on people

__A_YAHOO_USER__
__A_YAHOO_USER__ - Wednesday July 30, 2008 02:42AM EDT

I'm in a $4.00 : )

BIGZGUS101
BIGZGUS101 - Wednesday July 30, 2008 02:45AM EDT

You tell me. It could be a way they were conspiring for Big corp. to take over little corp; and give you and me less say.. so...? huh. I think these guys still have something up their sleeve. But will the neo-cheaters win; or will the ones with the brains. Its brains versus brawn I say. Go figure. Do the math really quick; and tell me how often this guy really loses. I smell something fishy. Is Yahoo smart enough to see the damage these guys are doing to the company's value. All things aside... I must reccomend we all hold on; because we can't let Yahoo go to a gut like Icahn who really doesn't even know a whole lot even how the internet works. Or will he have to put back to the test of his gambling skills on this one. Well, I hope yahoo can stay independent; and work to provide a more enjoyable, easy to use; and more profitable company without giving too much control to a board of directors. Remember we are your users. You need us more than we need you. So think about the little guy who just wants what he needs. Instead of a system that tries to decide what he needs. These are crucial times for a business. A few bad moves and it could result in a tailspin for everyone. I don't think many of you even appreciate the chance to read someone elses point of view. You like what the system gives you. And the reason is you are a lazy cheater type guy who wants something for nothing. Come on people

BIGZGUS101
BIGZGUS101 - Wednesday July 30, 2008 02:46AM EDT

You tell me. It could be a way they were conspiring for Big corp. to take over little corp; and give you and me less say.. so...? huh. I think these guys still have something up their sleeve. But will the neo-cheaters win; or will the ones with the brains. Its brains versus brawn I say. Go figure. Do the math really quick; and tell me how often this guy really loses. I smell something fishy. Is Yahoo smart enough to see the damage these guys are doing to the company's value. All things aside... I must reccomend we all hold on; because we can't let Yahoo go to a gut like Icahn who really doesn't even know a whole lot even how the internet works. Or will he have to put back to the test of his gambling skills on this one. Well, I hope yahoo can stay independent; and work to provide a more enjoyable, easy to use; and more profitable company without giving too much control to a board of directors. Remember we are your users. You need us more than we need you. So think about the little guy who just wants what he needs. Instead of a system that tries to decide what he needs. These are crucial times for a business. A few bad moves and it could result in a tailspin for everyone. I don't think many of you even appreciate the chance to read someone elses point of view. You like what the system gives you. And the reason is you are a lazy cheater type guy who wants something for nothing. Come on people tell me what wrong with this picture?

BIGZGUS101
BIGZGUS101 - Wednesday July 30, 2008 02:47AM EDT

You tell me. It could be a way they were conspiring for Big corp. to take over little corp; and give you and me less say.. so...? huh. I think these guys still have something up their sleeve. But will the neo-cheaters win; or will the ones with the brains. Its brains versus brawn I say. Go figure. Do the math really quick; and tell me how often this guy really loses. I smell something fishy. Is Yahoo smart enough to see the damage these guys are doing to the company's value. All things aside... I must reccomend we all hold on; because we can't let Yahoo go to a gut like Icahn who really doesn't even know a whole lot even how the internet works. Or will he have to put back to the test of his gambling skills on this one. Well, I hope yahoo can stay independent; and work to provide a more enjoyable, easy to use; and more profitable company without giving too much control to a board of directors. Remember we are your users. You need us more than we need you. So think about the little guy who just wants what he needs. Instead of a system that tries to decide what he needs. These are crucial times for a business. A few bad moves and it could result in a tailspin for everyone. I don't think many of you even appreciate the chance to read someone elses point of view. You like what the system gives you. And the reason is you are a lazy cheater type guy who wants something for nothing. Come on people tell me what wrong with this picture?

BIGZGUS101
BIGZGUS101 - Wednesday July 30, 2008 02:48AM EDT

You tell me. It could be a way they were conspiring for Big corp. to take over little corp; and give you and me less say.. so...? huh. I think these guys still have something up their sleeve. But will the neo-cheaters win; or will the ones with the brains. Its brains versus brawn I say. Go figure. Do the math really quick; and tell me how often this guy really loses. I smell something fishy. Is Yahoo smart enough to see the damage these guys are doing to the company's value. All things aside... I must reccomend we all hold on; because we can't let Yahoo go to a gut like Icahn who really doesn't even know a whole lot even how the internet works. Or will he have to put back to the test of his gambling skills on this one. Well, I hope yahoo can stay independent; and work to provide a more enjoyable, easy to use; and more profitable company without giving too much control to a board of directors. Remember we are your users. You need us more than we need you. So think about the little guy who just wants what he needs. Instead of a system that tries to decide what he needs. These are crucial times for a business. A few bad moves and it could result in a tailspin for everyone. I don't think many of you even appreciate the chance to read someone elses point of view. You like what the system gives you. And the reason is you are a lazy cheater type guy who wants something for nothing. Come on people tell me what wrong with this picture?

tony n
tony n - Wednesday July 30, 2008 02:53AM EDT

I never like yahoo stock from the begening, that is a lots of better stock out there , why let yahoo play with your hard earn moneys.

Truth Revealer
Truth Revealer - Wednesday July 30, 2008 04:04AM EDT

Every board member and Yang should be legally forced to give the billions they own in stock options to the shareholders to provide $33 share for each of us. This abuse of fiduciary responsibility to shareholders will go down in history as one of the worst in the history of a corporation. It is disgusting, inexcusable and has raped the shareholders of almost half the value of their investment. What a disgusting and incompetent group of fools.

Yahoo! Finance User
Yahoo! Finance User - Wednesday July 30, 2008 04:12AM EDT

I think we need to take a step back and see the true potential of Yahoo being independent and the potential value it could bring to investors. Speculators are all out there crying about the deal and making personal remarks against the CEO, but let's not forget about the basics of economic and business cycles. Like all industries and companies out there, Yahoo is going through its cycle and it might be near the bottom, at the bottom, or pass the bottom. Yahoo is still a profitable company and with great potential to monetize their traffic, features and services so why sell themselves short to MSFT. But the success of the turn around does look grim and I put that on Icahn and not management. Icahn is a known corporate raider that can only see a few feet in front of him and does not have any true long term insight. Since Yahoo gave him 3 seats at the board it will only mean that Icahn has gain the strength it needs to tear the company apart and take it to the chopping block. Worst loss would be Yahoo's users and shareholders because Icahn only cares for Icahn not anyone else. Only the silly believes that Icahn is here to rescue the little shareholders.

JANIE P
JANIE P - Wednesday July 30, 2008 06:19AM EDT

I hope Ichan can get some justice for yhoo share holders. What is this all about anyway.........making money in a depressed economy. I need the $$$$$$$$$$$

- Wednesday July 30, 2008 07:46AM EDT

That's to bad some people lost on thier bets, the stock game needs tighting up for more financial integrity, maybe things might change when the big boys loses.

Don
Don - Wednesday July 30, 2008 08:06AM EDT

Microsoft offered $34 a share. Yahoo wanted $37. Microsoft said no and walked away. Yahoo management is indeed pathetic when it comes to shareholders.

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