Home » Internet Stocks » Internet Advertising, Internet Search

Yahoo and Icahn Could Be Talking Compromise

by: Tech Confidential posted on: July 04, 2008 | about stocks: YHOO

Font Size:
Print
Email

With his chances to take full control of the Yahoo! Inc. (YHOO) board of directors somewhere between slim and none, Carl Icahn's best bet to have a say in the Internet company's future lies in getting a few seats on the board. It's something we brought up last month, but the prospect is beginning to pick up steam.

The tapped-in Kara Swisher is reporting at All Things Digital that Icahn and Yahoo! are in talks about just that. Yahoo!'s impetus for making such a deal is to avoid the messiness that typically surrounds proxy fights. Icahn's goal would be to get some representation so he can have more oversight on his sizable investment in the company. The two sides apparently are negotiating on the number of seats Icahn could get.

If such a scenario comes to pass, Icahn wouldn't necessarily have the power to do things like try and re-engage Microsoft Corp. (MSFT) in acquisition talks, but he would be in a better position to keep pressure on Yahoo! and hopefully get the board to do a better job of maximizing shareholder value.

"Icahn's good at this stuff," said Tom Taulli, author of The Complete M&A Handbook. "He's got tons of experience making life miserable for these managers. Yahoo! management hasn't had much pressure on itself; if he gets some people on the board it's going to be a constant reminder, it's not going to be fun to run the company."

Finally, we would be remiss if we did not mention perhaps the best headline written throughout the Yahoo!-Microsoft saga, courtesy of Silicon Alley Insider. In a post covering the seemingly endless rumors surrounding what Yahoo! and Microsoft may be up to, Alley Insider writes, "Yahoo!, Microsoft, Time Warner, News Corp. and AOL Agree To Talk Forever And Never Do Anything." Well played, we feel your pain.

Be the first to comment on this article! See below...