Yahoo! has settled its spat with rebel billionaire investor Carl Icahn (pictured) over the make up of the internet company’s board. The settlement comes just over a week ahead of Yahoo!’s AGM on August 1.
The settlement will see eight members of Yahoo!’s existing board, including chief executive Jerry Yang and chairman Roy Bostock, stand for reelection at the AGM. In light of settlement, director Robert Kotick, chairman and chief executive of video games publisher Activision, has opted not to stand.
The company’s board will be expanded to 11 members following the AGM with Ichan gaining a seat, and the remaining two seats filled by recommendations sent by Icahn to the board’s nominating and governance committee. His nominees include Jonathan Miller, a partner at Velocity Interactive Group and former chief executive and chairman of AOL.
The move means that Icahn has also dropped his bid to force his own nominees onto the Yahoo! board at the AGM.
The settlement is expected to finally fend off Microsoft’s hopes of acquiring Yahoo!’s search engine business. Microsoft had been in negotiations with Icahn, and said it would reignite a deal if a different board was in charge at Yahoo!.
On July 13, Yahoo! rejected a joint proposal from Microsoft and Icahn for a complex restructuring of Yahoo! that would have included the acquisition of Yahoo!’s search business by Microsoft.