Yahoo !: cancer and pike agreed

Published on July 21, 2008

Yahoo !: cancer and pike agreed

    In the protracted confrontation between billionaire Carl Icahn and the board of directors of Internet giant Yahoo! the period of discharge has come. A press release released on Monday announced the decision of the company’s board to expand its composition to represent at least two of the forces that have pulled it in different directions in recent months. Icahn, all this time persuading shareholders to re-elect the entire Council and agree to the offer of Microsoft to sell Yahoo!, got so long desired seats on the Council. And the current leadership got a chance to discuss internal problems without taking litter out of the hut, without putting their strategy at risk of meeting the opinion of the crowd of shareholders.

    At the upcoming annual meeting of shareholders on August 1, the question of re-election of the Board of Directors will be raised, but now there is almost no doubt that its composition will not change much. 8 out of 9 current members nominated for re-election (including Yahoo! CEO Jerry Yang), one will be taken by Karl Icahn, and two will be people from his 9-person list (including former AOL CEO Jonathan Miller (Jonathan Miller)). The number of directors will thus be brought to 11.

    Karl Ikan today owns a 5% stake in the company (without two hundredths), but his active position has made worried holders of much more impressive packages. Many experts are already in a hurry to connect his appearance on the board with big changes in the future. It is, in particular, about getting rid of the Asian assets of Yahoo! and personnel shifts. Which, ultimately, should increase the value of the company, or at least only its search business, for sale by Microsoft.

    In the commentsReuters Ikan said he was “happy” with such attention to his position and a wise decision not to hastily reject interesting offers. Pretending to be a winner, Karl nevertheless cannot but realize that for him everything could have turned out and not so rosy, since recently the holders who have not taken any side before almost the same as his blocks of shares have begun openly declare your support for the current board. “It did a poor job, but unfortunately, really good internet managers do not line up at the door to accept this challenge,” analyst Ross Sandler explains.

    Commentators disagree on the role of such a decision in the fate of one of the few Internet companies that can still restrain Google’s expansion. The plus is undoubtedly the fact that Yahoo! there was a chance to stop rushing from side to side and choose a certain path. On the other hand, this chance entirely depends on whether the new Council will be able to agree within itself. In addition, a similar situation, as a result of which Ikan dragged his people to the Motorola board last year, did not save the latter from falling into the deep crisis in which she remains today.