Yahoo and Carl Icahn have called off the proxy battle for control of the company. They reach a deal in which Yahoo’s board is expanded to 11 members. The current 8 members stay in place and Ichan and two other nominees from Ichan’s list join the board. Ichan has agreed to withdraw his slate of alternative directors.
It isn’t clear how they reached such a deal, considering that both side’s exchanges were close to becoming personal. Things seem to be all warm and fuzzy right now.
"While I continue to believe that the sale of the whole company or the sale of its search business in the right transaction must be given full consideration, I share the view that Yahoo!'s valuable collection of assets positions it well to continue expanding its online leadership and enhancing returns to stockholders.", Ichan said.
What this means for any possible deal between Microsoft and Yahoo remains to be seen, but further discussion on the matter is certain to be behind closed boardroom doors.
It seems that Yahoo’s recent rejections of a Microsoft offer with a short deadline, has spurred on investor Carl Icahn to proceed with his attempt to replace Yahoo’s current board, including Chief Executive Jerry Yang.
In a note written to Yahoo shareholders Icahn said, "Our company is on a precipice and our board seems ready to take the risk of seeing it topple".
Yahoo Chairman Roy Bostock and Chief Executive Jerry Yang wrote, "We are prepared to let you, our stockholders, not Microsoft and Carl Icahn, decide what is in your best interests and we look forward to the upcoming vote".
Recent gains that Yahoo stock had made on hopes that Ichan could broker a deal fell 4.2% on Monday’s trading.
It seems the showdown is on for the August 1st shareholders vote. You can catch more details here.
Will Yahoo be assimilated? Is resistance futile? Sound off, and tell us what you think!