Yahoo! Removes Icahn Banner From Homepage & Settles On A Deal

Posted Jul 21, 2008

Yahoo Inc. (NASDAQ:YHOO) has reached an settled on agreement with Carl Icahn.  Carl Icahn will be given the chance to appoint himself and two other people to the Yahoo! board.  Yahoo! was able to prevent a showdown on August 1st during the annual shareholder meeting.  Yahoo!’s board will expand from 9 members to 11.  Jerry Yang, Yahoo!’s current CEO along with 8 other members will be looking to stand for a re-election.

“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,” stated Icahn in a letter regarding the settlement.

Yahoo!’s current board turned down 3 acquisition offers from Microsoft over the last few months while Carl Icahn was pushing Yahoo! to sell themselves.  If Icahn keeps persisting on selling Yahoo! while the rest of the board maintains their position, then there will obviously problems with keeping the search engine company stable.

But in the meantime, Yahoo! has removed the banner that they placed on the homepage that made Icahn look bad.