Latest offer, that would have broken up firm and dissolved management, is rejected
Yahoo has turned down yet another takeover bid from Microsoft, this time with the backing of investor Carl Icahn, who currently owns five per cent the web search giant.Both firms have extensive mobile interests - in addition to its OS, Microsoft is involved in search and advertising via its purchases of Motionbridge and Screentonic, respectively.
Yahoo, meanwhile, has its Go suite of mobile apps, bought mobile ad specilaist Actionality and is heavily involved with selling ad inventory for opertators like Vodafone.
The latest offer would have broken up Yahoo, leaving Microsoft with Yahoo’s search engine and Icahn with the rest. It would also have resulted in the decapitation of Yahoo's leadership, with the immediate dismissal of the entire board and top level management.
Citing the fact that it was only given 24 hours to respond and no opportunity to negotiate on any of the terms, Yahoo responded in a statement saying: “It is ludicrous to think that our board would accept such a proposal."
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Yahoo’s chairman Roy Bostock went on to say: “This odd and opportunistic alliance of Microsoft and Carl Icahn has anything but the interests of Yahoo!'s stockholders in mind."
Yahoo will hold its annual meeting on August 1st, when Icahn is expected to attempt to replace the current leadership with new directors of his own choosing, presumably in a bid to facilitate a future takeover attempt.
