Not an Easy Road for Yahoo

By Clint Boulton  |  Posted 2008-07-22 Print this article Print


Yahoo hasn't had it easy. The company has had to execute against brutally tough competitors in Google and Microsoft while being battered by all sides thanks to the failed acquisition fiasco with Microsoft.

To summarize, which I find nearly impossible considering all the Microsoft-Yahoo-Icahn chess moves and alleged pseudo deals to save Yahoo from its rival, Microsoft offered to buy Yahoo Feb. 1 for $44.6 billion.

Yahoo shrank from this unsolicited offer immediately, and there has been a battle of wills, not only between Yang and Microsoft CEO Steve Ballmer, but between Yahoo's entire board of directors and Icahn. As is his wont, Icahn has been bidding to play the role of puppet master.

He has tried to get Microsoft and Yahoo together in deals that would see either Yahoo sell its search business or entire company to Microsoft. This failed, too, and Icahn relented, agreeing to join Yahoo's board yesterday.

This quashed the concern of a proxy fight, where Icahn presumably would have ripped out and replaced Yahoo's entire board in favor of his own slate.

Now, the world waits to see how shareholders, who have been critical of Yahoo's failure to agree to terms with Microsoft, will weigh in at the Aug. 1 meeting.


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