Struggling Internet company Yahoo has struck a pact with its billionaire critic Carl Icahn by giving the hedge fund activist a minority presence on its board to avoid a potentially tempestuous showdown at a shareholder meeting next month.
Facing crumbling support among Yahoo investors, Icahn abandoned on Monday his efforts to overthrow the leadership of the embattled Silicon Valley company and force its sale to Microsoft.
Instead, the 72-year-old Icahn & Co hedge fund manager settled for an offer of three seats on Yahoo’s board. One director will stand down and the board will expand from nine to 11 members.
Wall Street analysts greeted it as a qualified victory for Yahoo’s founder, Jerry Yang (楊致遠), who has pressed hard to maintain its independence and who waged an energetic campaign to discredit Icahn.
Yahoo chairman Roy Bostock was “gratified” to reach a deal.
“We look forward to working productively with Carl and new members of the board on continuing to improve the company’s performance and enhancing stockholder value,” he said.
The pact ends a vitriolic two months in which Yahoo and Icahn have traded stinging accusations. The showdown arose after Yahoo turned down a US$47.5 billion takeover offer from Microsoft, angering investors who have grown impatient with its failure to keep up with Google as a leader in lucrative online searches.
As Yahoo’s annual meeting next Friday approached, the prospect of a hastily compiled slate of Icahn’s friends running the company appears to have been too much for institutional shareholders. The balance tipped on Friday when Yahoo’s second-biggest investor, the fund management firm Legg Mason, decided to support the existing leadership.
Scott Kessler, an equities analyst at Standard & Poor’s in New York, said the upshot amounted to a defeat for Icahn.
“The writing’s not only on the wall but on an agreement for all to see,” he said.
In spite of the deal, there would be pressure for a shake- up in recognition of discontent among a sizeable minority of investors, Kessler said.
“Jerry Yang’s been back in place for a year and a lot of people think he is not the right person for the job. It wouldn’t surprise me if there were some management changes to come,” Kessler said.
Icahn will take one of the board seats handed to his group under the deal, which is subject to approval by investors.
In a statement, Icahn said a sale of the firm or of its core search business should be given “full consideration.”
But striking a conciliatory note, he said: “I believe this is a good outcome and that we will have a strong working relationship going forward.”
AIR SUPPORT: The Ministry of National Defense thanked the US for the delivery, adding that it was an indicator of the White House’s commitment to the Taiwan Relations Act Deputy Minister of National Defense Po Horng-huei (柏鴻輝) and Representative to the US Alexander Yui on Friday attended a delivery ceremony for the first of Taiwan’s long-awaited 66 F-16C/D Block 70 jets at a Lockheed Martin Corp factory in Greenville, South Carolina. “We are so proud to be the global home of the F-16 and to support Taiwan’s air defense capabilities,” US Representative William Timmons wrote on X, alongside a photograph of Taiwanese and US officials at the event. The F-16C/D Block 70 jets Taiwan ordered have the same capabilities as aircraft that had been upgraded to F-16Vs. The batch of Lockheed Martin
GRIDLOCK: The National Fire Agency’s Special Search and Rescue team is on standby to travel to the countries to help out with the rescue effort A powerful earthquake rocked Myanmar and neighboring Thailand yesterday, killing at least three people in Bangkok and burying dozens when a high-rise building under construction collapsed. Footage shared on social media from Myanmar’s second-largest city showed widespread destruction, raising fears that many were trapped under the rubble or killed. The magnitude 7.7 earthquake, with an epicenter near Mandalay in Myanmar, struck at midday and was followed by a strong magnitude 6.4 aftershock. The extent of death, injury and destruction — especially in Myanmar, which is embroiled in a civil war and where information is tightly controlled at the best of times —
Taiwan was ranked the fourth-safest country in the world with a score of 82.9, trailing only Andorra, the United Arab Emirates and Qatar in Numbeo’s Safety Index by Country report. Taiwan’s score improved by 0.1 points compared with last year’s mid-year report, which had Taiwan fourth with a score of 82.8. However, both scores were lower than in last year’s first review, when Taiwan scored 83.3, and are a long way from when Taiwan was named the second-safest country in the world in 2021, scoring 84.8. Taiwan ranked higher than Singapore in ninth with a score of 77.4 and Japan in 10th with
SECURITY RISK: If there is a conflict between China and Taiwan, ‘there would likely be significant consequences to global economic and security interests,’ it said China remains the top military and cyber threat to the US and continues to make progress on capabilities to seize Taiwan, a report by US intelligence agencies said on Tuesday. The report provides an overview of the “collective insights” of top US intelligence agencies about the security threats to the US posed by foreign nations and criminal organizations. In its Annual Threat Assessment, the agencies divided threats facing the US into two broad categories, “nonstate transnational criminals and terrorists” and “major state actors,” with China, Russia, Iran and North Korea named. Of those countries, “China presents the most comprehensive and robust military threat