Feeds

Yahoo! counts! the! reasons! it's better! off! without! Microsoft!

Defends right to sell itself

Boost IT visibility and business value

Tired of taking it on the chin from bully activist investors, Yahoo! executives are counting the reasons why they're better off forging a advertising partnership Google rather than selling the company's search business to Microsoft.

In a letter to shareholders CEO Jerry Yang and chairman Roy Bostock said the Microsoft plan "would also have given Microsoft veto rights" on such things as a future sale of Yahoo. As a result, the pact it signed with Google earlier this month is much more attractive than anything it could have gotten from Redmond.

"While Microsoft's search-only hybrid proposal may have been helpful to Microsoft, our board and management concluded it would have had a significant adverse impact on Yahoo! strategically, leaving the company without the operational control of search assets and technology we view as critical to our objective of becoming a leader in the converging search and display advertising business," the letter stated.

The executives also said Yahoo's board of directors tried to get Microsoft to sweeten the terms of its offer, but that the efforts ultimately failed.

If Yang and Bostock sound just a tad defensive, investor Carl Icahn may have something to do with it. Arguing that a deal with Microsoft is more beneficial to shareholders, he is calling for Yahoo's current board members to be replaced with a slate of nominees who would approve the deal.

The Yahoo executives urged shareholders to reject Icahn's plan, calling it an "ill-advised agenda." ®

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.