Yahoo strikes a deal with Icahn

— 11:06 AM on July 21, 2008

Rather than see Carl Icahn push Yahoo shareholders to replace the current board at their forthcoming August 1 meeting, Yahoo's directors have struck a deal with the billionaire investor. As the Associated Press explains, the agreement will see Icahn and two of his directorial nominees get seats on the board, while Yahoo's Robert Kotick will step down. Seven other Yahoo directors plus current CEO Jerry Yang will retain their seats.

Icahn's list of nominees includes the eight men he previously intended to replace the Yahoo board, as well as former AOL CEO Jonathan Miller. The AP hints that Icahn could recommend Miller as a "possible successor" to Yang, although such a move probably isn't part of the deal.

Either way, the compromise may not prevent Icahn from putting Yahoo in Microsoft's hands. The investor reportedly emphasized that he "still believes a sale of all or part of Yahoo may still be the best way for [Yahoo] to lift its sagging stock price." As for Yang, he stated he is looking forward to working with the new directors to "help [the company] take advantage of the large and growing opportunity ahead of us."

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