Replies to post #1831 on Alphabet Inc (GOOG)

[SeriousMoney]

Phil: Your 450 WAG is looking good with <10 days to go! Got a new one? http://www.investorshub.com/boards/read_msg.asp?message_id=8934443

[SeriousMoney]

Visionary or Icahnoclast?

Icahn's Open Letter
To Time Warner Board
WSJ.com, December 19, 2005 3:32 p.m.



Following is an open letter, released Monday, that investor Carl Icahn sent to the board of Time Warner Inc.

To the board of directors of Time Warner:

Like all shareholders, I am not opposed to Time Warner entering into an AOL transaction that creates long-term value. 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 if this agreement would make it more difficult in any way or effectively preclude a merger or other type of transaction with companies such as IAC/InterActive, eBay, Yahoo, or Microsoft etc.

I believe there are and will be major opportunities to enhance Time Warner's value in future combinations. However these transactions might not be achievable if Time Warner enters into long-term arrangements that preclude future flexibility such as an agreement regarding search functionality. I also question whether Google is the best partner for unlocking the value of the AOL asset. Indeed, a recent Goldman Sachs report concludes, "In contrast to the conventional perspective, we believe that eBay, followed by InterActive Corp., would provide greater incremental benefits to AOL's option value with fewer conflicts of interest than Yahoo! while MSN and Google would provide the least incremental benefits."

On the eve of a proxy contest, I believe it would be a blatant breach of fiduciary duty to enter into an agreement with Google that would either foreclose the possibility of entering into a transaction that would be more beneficial for Time Warner shareholders or make such a transaction more difficult to achieve. If, as is my belief, other suitors interested in transactions predicated on receipt of control of AOL have been foreclosed from entering into negotiations, the board's actions would be even more questionable. The real risk for Time Warner shareholders is that a Google joint venture may be short-sighted in nature and may preclude any consideration of a broader set of alternatives that would better maximize value and ensure a bright future for AOL.

Once again, I am not opposed to the board using its business judgment to enter into a transaction with Google or another suitor so long as the transaction does not destroy or impede Time Warner's flexibility to unlock shareholder value in the near and long term. However, I want this letter to serve as notice to Time Warner's directors that if they enter into a transaction that has that effect, shareholders will seek to hold directors responsible

http://online.wsj.com/article/SB113502362232326593.html?mod=yahoo_hs&ru=yahoo

[SeriousMoney]

GOOG playing catchup... again?



VoIP Market Seen Splitting Into Access, Applications
Forbes.com, Kate DuBose Tomassi, 12.20.05, 3:54 PM ET

After an "eventful week" in Voice over Internet Protocol, Merrill Lynch analyst Glen Campbell concluded "we continue to believe that VoIP, particularly with the portals and Skype now competing for leadership, will separate the access and applications businesses over time."

EBay (nasdaq: EBAY - news - people ) completed the acquisition of Skype in October.

Last week, "Google (nasdaq: GOOG - news - people ) launched its mobile e-mail service in the U.S. and entered exclusive negotiations with Time Warner (nyse: TWX - news - people ) for a 5% stake in AOL," the analyst said in a report.

"While there are many reasons for Google to court AOL, an important implication is that Google might pull AOL, with its huge instant-message user base, out of the Microsoft (nasdaq: MSFT - news - people )-Yahoo! (nasdaq: YHOO - news - people ) orbit in favor of its open-standards approach," said Campbell. "Communications applications (instant messaging in particular) have enormous network effects. The established portals and Skype use proprietary protocols for voice communications and have an important head start; Google is playing catch-up very aggressively, it appears," he said.

In other VoIP news this week, Vonage launched the UTStarcom (nasdaq: UTSI - news - people ) F-100, a Wi-Fi telephone. Microsoft announced plans for a "PC-to-phone service, to be launched in 2006, in partnership with MCI (nasdaq: MCIP - news - people ), said the analyst. And on Dec. 13, Yahoo! announced its VoIP launch, he said.

http://www.forbes.com/2005/12/20/voip-google-aol-1220markets12.html?partner=yahootix

[SeriousMoney]

What did GOOG catch today? http://ichart.finance.yahoo.com/w?s=GOOG