Microsoft seems to be a rather persistent contender, even after the failed deal with Yahoo! in January, Microsoft, it seems that it is just waiting for the opportune moment to pounce on Yahoo!.
The man who can make Microsoft’s dreams come true is none other than Carl Icahn, who has already got a nice stake in Yahoo’s shares, and is planning Yahoo co founder Jerry Yang’s downfall at the next meeting of the board of directors on 1st August.
In a letter issued to all Yahoo shareholders, Icahn told of Steve Ballmer’s intentions to have major transaction with Yahoo only if the present board of directors is removed.
Icahn mentions in his letter that Ballmer may buy just the search engine facilities or the whole company.
Yahoo in retaliation stated to the shareholders that it was Microsoft that walked away from the deal stating that the price set by Yahoo was too much.
Yahoo also said that the deal between Icahn and Microsoft is something they (Yahoo) consider to be detrimental to the shareholders, and if Microsoft and Icahn really want to make a beneficial deal then Yahoo board of directors are still ready to talk.
Presently both Microsoft and Yahoo are seeing their profits lose to Google, Microsoft sees acquisition of Yahoo as a means to challenge Google, but experts believe that simply providing another generic search engine is not enough to fight against Google.
Many believe that the acquisition of Yahoo holds no profit other than just showing off Microsoft’s power against a company that dared to say no to it.
However it all boils down to the 1st of August and meeting of the board of director that is to take place, which will decide the future of Yahoo.