Jerry Yang is going to stand down as CEO for Yahoo, as soon as a suitable replacement can be found. Has he finally bowed to pressure after the Microsoft mess? Personally, that’s what my gut feeling is. With Carl Icahn on the board now, who publicly stated that he would fire Jerry Yang if he won his proxy battle, nearly six months ago, has convinced some of the other members of the board that the way forward for Yahoo is without Yang. Is this the right move for Yahoo, or could it destabilise the company further?

Steve Ballmer has publicly said that a Microsoft and Yahoo! deal would be good for both sets of shareholders – still, after all this time.

I guess with the world’s markets the way they are, it would make sense to combine forces – even though technically both companies are worth a lot less on the stock exchanges. Roughly the same time that Steve Ballmer made the comment, Microsoft officially announced that the software giant was not in talks with Yahoo’s board… Hey haven’t we heard that before?

I’m not sure if this is a Microhoo story or not, but I do know that Yahoo’s shares have dropped to a 5 year low – at what point does this equate to “Shareholder Value” exactly Mr. Yang? Of course, The Register were one of the first (even ahead of me!) to jump on that particular bandwagon!

The proxy battle that has been in the wings since the start of this whole affair with Carl Icahn, has finally been resolved. Mr Icahn, is to take a seat on the board, plus another 2 members, which will be voted on from a list of 9 possible candidates. The board will expand to 11 members as one of the current members is resigning to concentrate on his other company.

So where does that leave Microsoft now? It appears they will have to go it alone, if they’re still serious about buying Yahoo. However, I think it’s probably the final straw for Steve Bulmer. I don’t see any deals being of great benefit to Microsoft now. Without Carl Icahn fighting for a proxy contest, to oust the current board, Microsoft have nothing to gain, unless they buy the whole company for $33 a share. But then, as we know with this ongoing soap opera, anything can change in an instant.

Their words, not mine. It appears the press release from Yahoo wasn’t taken too kindly by Microsoft. What basically amounts to a few corrections here and there of the Yahoo statement, I see as further reason to undermine Yahoo’s board. Some would call Microsoft’s statement as pettiness, but I think it’s all part of their strategy to cause unease in the company, divide employees and reduce the company’s value – ready for them to move in and grab what’s left over.

All those many months ago I said Microsoft would get Yahoo – as soon as the announcement was made, they were going to get them (in my opinion). Well now it looks, after another twist, that I might still be right.

After the initial proposal, Microsoft switched tact and said they didn’t want the number 2 search engine anymore – the $31 a share was final and if Yahoo! were not prepared to deal, they would walk away – which is exactly what they did – for a short time. A major investor in Yahoo, Carl Icahn, come out of the woodwork and said he would offer a new slate to overthrow the board, for the express reason to reopen negotiations with Microsoft – something Jerry Yang of Yahoo said was pointless as the software giant weren’t interested after the previous talks.

Now however, Microsoft have shown renewed interest in the search engine after a deal was struck with Carl Icahn and the new board (if successful). Microsoft have said they will be interested in taking over the search side of Yahoo’s business, whilst Carl Icahn will have control of the rest. This break up of the company would mean the current board of directors would be turfed out, including the guy who formed Yahoo, Jerry Yang. Of course the proposal was met with Yahoo’s stock answer of “not in the best interests of its stockholders.”

So what happens now? The stage is set for a gritty battle with Yahoo firmly on the defensive. Given 24 hours to accept the proposal, and Yahoo flatly refusing, means that things will get uglier from this point on. I think the gloves have come off, and both sides are reaching for some lead pipe.

After all the talks have turned to nothing, and shareholders prepare to oust the current board, there are tiny whisperings that maybe the Microsoft/Yahoo deal isn’t over – just yet.

Most of this is speculation, but there are already rumours about a renewed bid, far below what Microsoft originally offered. So is it just more gossip? Or (tin-hat time now I think) is it Microsoft using the public to revise interest in an otherwise dead pursuit? Maybe it’s true and Yahoo aren’t interested. Or maybe Jerry Yang has realised all the bad press for his failure to accept Microsoft’s offer has meant he’s had to go crawling back to accept a worse offer and retain his position in the company? All these questions, and only time will give us the answers.. Original source is this Reuters Article

Yeap – that’s right – in my opinion, Yahoo! has definitely done the wrong thing. They have struck a deal with Google, so that their search results display Google-ads. Why would Yahoo do this? Sure you can understand the temporary shareholder value increase, but in the long term can only spell death for the search engine.

So the company is worth more, at least in the eyes of the shareholders and Microsoft, but does that mean Microsoft are interested anymore? I don’t think so. Of course, we can only speculate on the intricacies of the contract struck between Google and Yahoo!, but I’m sure Google have worded the legalise to make sure their ad deal sticks, no matter who buys Yahoo! – you would be stupid not to. By penning this one deal, I think the following will happen:

• Google will remove Yahoo! slowly from the search arena and gain monopolistic proportions themselves – 82% according to ComScore
• Microsoft will instantly been turned off by a Yahoo! deal, partial or otherwise – Jerry Yang’s plan?
• The replacement of Yahoo!’s board with Icahn’s influence may actually carry some weight now
• An anti-trust lawsuit to follow if Yahoo dips out of search?
• Yahoo! to switch tactics and focus fully on community driven projects, with Google supplying the ads

So what next for Yahoo!? It looks as though they’re getting out of the search game to me, either by choice or by Google sucking them dry.. Anyone remember AOL as search? Didn’t think so..

We want to see an end to the Yahoo! Microsoft battle that will hopefully benefit the whole online community. However, with the current tit-for-tat goings on between Jerry Yang and Carl Icahn, it looks like the dispute over who’s more capable of running the company will go on for a few months yet – at least until the board of directors get a vote of confidence, or otherwise.

With a reply to Carl Icahn’s recent ramblings about whose is bigger than whose, Yahoo! are appealing to the stockholders to hopefully see the light and retain their confidence in an otherwise chaotic company’s recent history. Is Steve Ballmer still rubbing his hands, ready to exploit the spoils? Or is he thinking of distancing himself further from this self-imploding wreck of a company? Only time will tell I guess..

August 1st is the date when a new board will be proposed by Carl Icahn, shareholder and expert at releasing cats amongst pigeons. Mr Icahn has publicly stated he will sack Jerry Yang, one of the co-founders of Yahoo, if he’s successful with his bid, along with a lot of the other directors.

I personally don’t think Carl Icahn is going to be successful with his bid – he’s starting to come across as a bit of a mad man, with his intimations of “showing Microsoft Yahoo! are serious about a deal.” Serious? Don’t you mean desperate? I’m sure Steve Ballmer is rubbing his hands with glee at the moment with the negative discourse and division in the Yahoo! camp – ready to pick up the pieces once the dust settles.