Yahoo vs Icahn

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Filed under: DAILY Dose of PC News 

Microsoft vs YahooAs we’ve reported several times on PC Authorities, the Microsoft vs Yahoo ordeal has turned into an ugly showdown. Several insider reports claimed that Yahoo did another rebuff to Microsoft just this Saturday when Microsoft reportedly wanted to acquire Yahoo’s online search engine. At the center of the turmoil is Carl Icahn, who is leading a shareholder rebellion aimed at removing Yahoo’s current board according to Wired Magazine.

Analysts state that Yahoo was wise to turn down Microsoft’s offer on Saturday because part of the deal would have left the remains of Yahoo in Icahn’s control. Icahn has no “experience running an internet company,” states Wired. “It’s not surprising that Yahoo would reject an offer like that,” Gartner Inc. analyst Andrew Frank said Sunday. “It would be just too complicated to do.”

Since Yahoo put another stop to Microsoft’s interest, there’s little to no doubt that August 1st will be a pivotal date for Yahoo shareholders as Icahn will most likely challenge the shareholders to remove the entire Yahoo board of directors.

The debate, which has raged on for months and has almost every user of the internet annoyed, seems to now be between Yahoo’s current leadership and Icahn and less to do about Microsoft. According to analysts, if Icahn gets his way on August 1st, he will then work a deal for Microsoft to acquire Yahoo. However, Icahn has recently stated he wants Yahoo to sell just their search operations to Microsoft which is a completely differnent route than what he originally wanted for Yahoo and Microsoft. He’s yet to comment why he’s changed his mind.

Clearly, Microsoft still has some interest in Yahoo and most believe it’s to thwart off it’s biggest rival, Google. Needless to say, August 1st will be a very interesting day for both companies. More to come!

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