Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

Ebola virus : Liberia shuts most border points

Read more

MEDIAWATCH

"What would you do?"

Read more

DEBATE

Too Late for Sanctions? Pressure Mounts on Russia over Ukraine (part 2)

Read more

DEBATE

Too Late for Sanctions? Pressure Mounts on Russia over Ukraine

Read more

FOCUS

As France’s Carrefour pulls out, what next for India’s retail market?

Read more

#TECH 24

Internet of Things

Read more

THE WORLD THIS WEEK

The World This Week - July 25th, 2014 (part 2)

Read more

REPORTERS

Halal tourism on the rise

Read more

THE WORLD THIS WEEK

The World This Week - July 25th, 2014

Read more

  • Israel warns of ‘prolonged’ campaign in Gaza

    Read more

  • In pictures: From Gaza to Mosul, bittersweet end of Ramadan for Muslims

    Read more

  • France offers asylum to Iraqi Christians

    Read more

  • Tripoli threatened by out of control blaze

    Read more

  • Moroccan police arrest French al-Qaeda recruiter

    Read more

  • Russia ordered to pay Yukos shareholders over $50bn in damages

    Read more

  • French mayor files complaint against US father who risked kids’ lives on Mont Blanc

    Read more

  • French footballer Griezmann headed to Atletico Madrid

    Read more

  • Luc Besson’s sci-fi thriller ‘Lucy’ tops US box office

    Read more

  • Video: Slaviansk mourns mass grave victims

    Read more

  • France honours those lost on Air Algérie Flight AH5017

    Read more

  • Video: Ethiopia turns to wine to boost image, economy

    Read more

  • Thousands gather in Marseille in support of Israel

    Read more

  • As France’s Carrefour pulls out, what next for India’s retail market?

    Read more

  • Liberia tightens border controls to curb Ebola outbreak

    Read more

  • The centenary of Austria-Hungary’s calamitous last hurrah

    Read more

  • Nibali joins elite group with Tour de France win

    Read more

Yahoo! defends Google deal

Latest update : 2008-06-26

Defending its alliance with Google, Yahoo on Wednesday criticized corporate raider Carl Icahn's campaign to install a pro-Microsoft board of directors.

Yahoo on Wednesday sent a letter to stockholders defending its alliance with Google and criticizing Carl Icahn's campaign to install a Microsoft-friendly board of directors.
  
Yahoo's board is lobbying for allies as it heads for a showdown with the billionaire corporate raider at an annual gathering of the California firm's stockholders on August 1.
  
Icahn accuses Yahoo's board of bungling takeover talks with Microsoft and is trying to replace the board with members whose mandate would be to get the struggling Internet pioneer into a tie-up with the US software giant.
  
"You can choose to vote for a slate of nominees with no articulated plan for the future of Yahoo," board chairman Roy Bostock and chief executive Jerry Yang said in the letter.
  
"Or you can choose to vote for your existing board of directors which has the independence, experience, knowledge and commitment to navigate the company through the rapidly-changing Internet environment, execute on our strategic objectives and deliver value for Yahoo and its stockholders."
  
Yang and Bostock revealed that, after failed takeover talks, Microsoft suggested a "search-only hybrid proposal" in which it would buy Yahoo's online search business for a billion dollars plus a percentage of future ad revenues.
  
The offer included Microsoft making an eight billion dollar investment in Yahoo, but would have barred Yahoo from making search deals with anyone else.
  
The deal also would have given Microsoft veto authority over any proposed sale of Yahoo.
  
Yahoo rejected Microsoft's "hybrid" offer and signed a deal with Google to have the Internet search king use its expertise to target ads posted alongside results from Yahoo online search queries.
  
Google shares revenue from the advertising with Yahoo.
  
"The Google agreement is far better than Microsoft's search-only hybrid proposal," Bostock and Yang said in the letter. "That's why we moved forward with it."
  
The deal with Google doesn't preclude Yahoo from making other advertising alliances and is expected to improve Yahoo's cash flow by 250 to 450 million dollars in its first year, according to the letter.
  
"It is time for Yahoo to turn its undivided attention to implementing its key strategies, and we therefore urge you to reject Mr. Icahn's  slate and his ill-defined agenda," the executives wrote.
  
Icahn is tapping into the ire of investors upset that the Yahoo board rebuffed Microsoft's takeover bid.
  
Microsoft offered to buy Yahoo for 44.6 billion dollars in stock and cash on January 31, but withdrew the offer on May 3, saying Yahoo refused to budge despite the software giant upping its bid to nearly 48 billion dollars.

Date created : 2008-06-26

COMMENT(S)