Icahn Settles For Three Seats on Yahoo's Board

 By 
Stan Schroeder
 on 
Icahn Settles For Three Seats on Yahoo's Board

Yahoo! reached an agreement with Carl Icahn: eight members of Yahoo's current board of directors will stand for re-election; the board will be expanded to 11 members, Icahn will take one, and the other two will be chosen based on his recommendation.

Yahoo! co-founder and CEO Jerry Yang said this of the agreement:

“This agreement will not only allow Yahoo! to put the distraction of the proxy contest behind us, it will allow the Company to continue pursuing its strategy of being the starting point for Internet users and a must buy for advertiser.”

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Bascially, Icahn backed down in exchange for three seats on the board; and will not be pushing for the sale of Yahoo or its search business...for a while. Does it mean that the Microhoo soap opera is finally at an end? Far from it: this is just one little (costly) victory for Yahoo. If there is a clear "winner" in this story when the dust settles in the end, I bet it will be a Pyrrhic victory.

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