One of the most outspoken investors during the Microsoft-tries-to-buy-Yahoo debacle was Eric Jackson. Mr. Jackson leads a group 146 shareholders that owned a collective 3.2 million Yahoo shares. Those shares were sold last month.
Though Mr. Jackson did approve of the Yahoo-Icahn agreement that expanded Yahoo's board by 3 members, including Carl Icahn, it apparently was not enough.
Jackson, it turns out, has been right about Yahoo all along. He was one of the first to vocalize fears that Yahoo shares would drop significantly without a Microsoft buy. I, myself, was skeptical. But Jackson was right.
While Yahoo is the number 2 search engine, number 1 in email and the owner of several strong web properties, it's still not enough. Jackson identifies why when he said, "Leadership matters."
Writing at SeekingAlpha.com, Jackson explained: "I believed that with better oversight from a new board and management, Yahoo could finally capitalize on its many strengths. We've had no significant changes at either level. The company is still muddling ahead with just as many priorities, just as many staff and just as many boxes on the organizational chart. I came to the conclusion that this company is doomed to failure with the current board and leadership."
YHOO was trading at $12.34 at the time of this post.