by Jacob Morgan
As you may know Carl Icahn was rather upset with how Yahoo is running the company and actually sent a letter over to Yahoo expressing his dissatisfaction. In a nutshell the letter said, you should sell to Microsoft and get rid of Jerry Yang as CEO. There has actually been a lot of discussion as to what the best course of action should be, but the point is that Carl Icahn and other investors are upset. Today Carl Icahn and Yahoo have reached a settlement. The stipulations of the settlement are as follows:
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Eight members of Yahoo!’s current Board of Directors will stand for re-election at the 2008 annual meeting (Roy Bostock, Ronald Burkle, Eric Hippeau, Vyomesh Joshi, Arthur Kern, Mary Agnes Wilderotter, Gary Wilson and Jerry Yang)
Following the 2008 annual meeting, the Yahoo! Board will be expanded to 11 members
Carl Icahn will be appointed to the Board
Carls Icahn has agreed to withdraw his nominees for consideration at the annual meeting and to vote his Yahoo! shares in support of the Board’s nominees.
The full settlement agreement can be found here.
So it looks like Yahoo and Carl Icahn have managed to work out a relationships for now. I think everyone agrees though, that Yahoo needs to do SOMETHING. As far as I know their search traffic is slowly going down while Google search traffic is going up. If Yahoo continues on its current course, their may not be anything left of them in a few years.
What do you think about the Yahoo settlement with Carl Icahn?
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