In a move that is certain not to please Yahoo CEO Jerry Yang, Carl Icahn becomes part of the Yahoo Board of Directors. This is the Carl Icahn who openly campaigned for the sale of Yahoo to Microsoft. He was scathing in his criticism of the actions of Yahoo in preventing Microsoft’s acquisition. Now, he is part of the inner operations of Yahoo:
“…Carl Ichan, a corporate raider and proponent of the takeover, was elected to the board as part of a previously agreed truce between him and the company. He also will be able to recommend two additional members.
Ichan saw his election to the board as a compromise as he realised he could not win a proxy fight to remove the whole board. If Microsoft – or another potential buyer – returns to the negotiating table, Ichan will be in a stronger position to influence the outcome.”
If there was any question whether Microsoft has ended its pursuit of Yahoo, this strategic advantage should answer that query. Carl Icahn provides Microsoft with a direct link to the individual positions of each member of the Yahoo Board of Directors. Jerry Yang is left with the strong possibility of strong dissent from within his company directors. It becomes constant, relentless pressure from Microsoft.