If one is to google, Yahoo's decline from a $125+ billion internet giant to a company sold for a fraction of its former value is often cited as one of the biggest missed opportunities in tech history was well documented.
Yahoo notably rejected a US$44.6 billion acquisition bid from Microsoft in 2008 claiming Microsoft had undervalued Yahoo’s shares substantially before eventually selling its core business to Verizon for US$4.8 billion, in 2017 for approximately 11% of the total price they could have received in 2008.
Similarly of interest was that, earlier, in 1998, Google offered to sell to Yahoo, who rejected the offer, for US$1 million.
Google is now worth approximately US$4 trillion.
Yes, Yahoo still exists as of 2026 and remains an active web portal, search engine, and digital media company but it remains a shadow of its former self.
Locally, for reasons that huge tract of plantation land will fall into control of non Bumi, shareholders rebuffed the entry of KLK Kepong, a listed entity, who announced plans to acquire a 33% in Boustead Plantations Bhd (BPlant) for RM1.15 billion, or RM1.55 per share.
Under the offer, upon completion of the proposed acquisition, KLK’s shareholding in BPlant was supposed to increase from nil to 33% and 1 share, while Boustead Holdings Bhd (BHB) and Lembaga Tabung Angkatan Tentera (LTAT) will collectively retain their remaining equity interest of 35.0% in BPlant.
In this deal, the acquiror, KLK Kepong announced that the move was aimed to enhance the operational efficiencies and crude palm oil yields of the plantations of BPlant over the long term.
According to a report from MIDF Research, it states that KLK's oil extraction rate (OER), fresh fruit bunches (FFB), age profile and oil yield are among the best in the industry.
Whereas BPlant's performance was always below average and it has old trees and it needs replanting, which will reduce the expected yield and return on its investment in the first few years.
Even though the original offer was revised later to include BHB and LTAT as joint offerors with KLK to include the offerors extending a mandatory take-over offer to acquire all the remaining BPlant shares not already owned for a cash offer price of RM1.55 per BPlant share, it was obvious BPlant, eventually privatisatised by LTAT, lost a missed opportunity.
No one knows for sure what happened to the fate of the plantation presently.
Another case was Kodak who invented the consumer digital camera in 1975 but refused to pivot, fearing it would destroy their profitable film business.
Management kept pushing film, ignoring the digital revolution, allowing competitors to take over the market.
Kodak filed for bankruptcy in 2012.
Yes, there are also cases of companies bought out and failed thereafter post merger.
But there are also cases of companies which sold and continued to thrive post buyout.
Thus, other than evaluating the financial details of the offer from Sunway, shareholders of IJM need to evaluate and ask themselves whether the existing BOD and management of IJM can rise up and improve on its previous performance and increase returns to all the stakeholders in the immediate future or the company under the aegis of the BOD and management of Sunway will do a better job?
It is a contest of the leadership and management capability in both entities and who do you believe realistically, has the capability and resources to bring IJM to a higher level.
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