SAN FRANCISCO (AP) - Yahoo is relinquishing three seats on its
board of directors to activist investor Carl Icahn. The move ends a
battle for control of the Internet company while still leaving the
door open for a possible sale to Microsoft.
The truce gives Yahoo a reprieve from two months of bickering
with Icahn, who had been spearheading a shareholder rebellion aimed
at replacing the company's entire board in retaliation for
rejection of Microsoft's takeover bid.
The showdown had previously been on track to culminate in a
shareholder vote at Yahoo's annual meeting next month.
That gathering now looks like it will mark a cease-fire, giving
Icahn three of the 11 seats on Yahoo's expanded board.
Eight of Yahoo's current nine directors will remain on the
board, leaving the company's current regime - headed by Chairman
Roy Bostock and CEO Jerry Yang - in the driver's seat.
The compromise negotiated over the weekend doesn't necessarily
settle Yahoo's fate, which has been unclear since Microsoft made
its first unsolicited offer in January.