End game
The latest chapter in the protracted Microhoo saga concerns activist investor Carl Icahn sending a letter to Yahoo! shareholders this morning in advance of the Yahoo! AGM on 1st August.
In it, it is reported that he said if he’s elected to the board at the AGM, he will try to sell at least the search part of Yahoo! to Microsoft.
Microsoft has responded by saying it “would be interested in discussing with a new board a major transaction with Yahoo!, such as either a transaction to purchase the “Search” function with large financial guarantees or, in the alternative, purchasing the whole company.”
It welcomed Icahn’s activities and stressed that, while it’s given up on coming to an agreement with the old board, a new board is another matter entirely.
There doesn’t seem to have been an official response from the incumbent Yahoo! board yet.
UPDATE, 17:10, 7th July 2008: Yahoo! has now issued its response to Carl Icahn's letter saying that is still open to offers from Microsoft but doesn't believe that just selling the search business will provide value to shareholders.
It makes the point that Icahn doesn't seem to have a plan for Yahoo! beyond flogging it to Microsoft, but doesn't give any indication of the terms on which it would be willing to do business with Microsoft directly.
Icahn Issues Open Letter to Shareholders of Yahoo!
Microsoft Statement Regarding Carl Icahn Letter
Yahoo! Statement in Response to Carl Icahn's Latest Open Letter
