It is a bit hard to tell whether Carl Icahn or Jerry Yang has backed down the most in the settlement of the proxy fight between Mr Icahn and Yahoo. But I suspect it means that Microsoft will have to make a full bid for Yahoo if it wants to gain control of its search assets.
I think this is the right conclusion. I have written of my doubts about whether Mr Yang is an appropriate chief executive for Yahoo, it also seems to me that Yahoo should not cede control of search to Microsoft unless the latter offers a premium for control. Read more