Yahoo Enters Merger Talks With Time-Warner

Yahoo! spent the July 4 weekend in discussions with its lead adviser, Goldman Sachs, and potential bid partners including Time Warner in a desperate bid to defend itself from shareholders meeting on August 1 to vote on whether to re-elect their board.

The possible merger with Times-Warner’s AOL division could be worth as much as $10 billion (£5 billion).

On the other hand Mr Carl Icahn, the billionaire activist investor and Yahoo’s major shareholder, has already nominated himself and other executives to replace the existing Yahoo! board.
Source: Times Online

Mr. Icahn is angry that shareholders were not given the opportunity to vote on a $47.5 billion cash and shares offer from Microsoft in May, and wants investors to vote to remove the board when they meet in less than three weeks. Frankly, I would be too in his position. Understandably Jerry Yang, co-founder & CEO of Yahoo, is desperate to secure a deal before the potentially volatile board meeting which may also pave the way for breaking up Yahoo.