The Microsoft-Yahoo takeover soap opera took another twist yesterday when the software company said that it would renegotiate a possible deal with Yahoo providing that the internet firm takes on a new management team.
The news comes after billionaire investor Carl Icahn held talks with Microsoft boss Steve Ballmer. In a letter to Yahoo shareholders, Icahn stated that Microsoft would only be willing to discuss a takeover deal if Yahoo changes its current board of management.
Ballmer’s words will be a huge boost to Icahn who has been single-handedly conducting a campaign to oust current Yahoo CEO Jerry Yang. Last month Yahoo cut off talks with Microsoft over a possible merger and instead announced an $800m advertising deal with Google.
Icahn tried unsuccessfully to oust Yahoo's board following the failed merger with Microsoft back in April; Yang was the main target of the billionaire shareholder's anger. The corporate raider has since drawn up a short list of alternative candidates for Yahoo's board including Mark Cuban and Frank Biondi of Viacom ahead of the company's AGM in August.