Microsoft-Yahoo Takeover Still Possible
By Anna Johnson on July 8th, 2008If Carl C. Icahn seizes control of the board of Yahoo, Microsoft’s purchase of the No. 2 Internet search company could be back on the agenda.
In co-ordinated statements released to the media over the weekend and on Monday respectively, Mr Icahn and Microsoft signaled that the companies would renew acquisition talks if Icahn wins his proxy fight and takes control of the board.
So what’s standing in Icahn’s way? Yahoo’s largest investors need to vote on whom they think should remain on, or join, the board. Should the vote go Icahn’s way the current board will be replaced by Mr Icahn and his supporters, while Yahoo-founder and current CEO, Jerry Yang, will be out the door.
Microsoft’s interest in buying Yahoo – or simply its search technology – coupled with its plans to purchase semantic search engine Powerset, seem only to highlight the company’s frustration with being a distant third in both the search and search advertising markets.
Source: Miguel Helft, “Microsoft Is Icahn’s Ally in Pursuit of Yahoo”, The New York Times, July 8, 2008
