And so Yahoo’s battle to stay away from Microsoft’s take-over deal heats up as Microsoft prepares its proxy battle to win Yahoo. AP is reporting that Microsoft has already contacted Innisfree M&A Inc., a proxy solicitation group.
According to the report, the group will help oust Yahoo’s 10-member board that incidentally is all up to re-election this year. This could probably explain the reason why Yahoo has just adopted new severances packages for its current employees. A safeguard, in case Microsoft succeeds in ousting the Yahoo board despite Jerry Yang’s reassurance to his employees that such severance packages was in any way an indication that Microsoft may actually take over Yahoo.
However, the new severance package states that it will ensure that all Yahoo workers stay on board even if the company goes under new ownership.
No matter how much Yahoo tries to evade Microsoft’s take over threat, all developments are pointing out to a possible ousting measure of the Yahoo Board who remain steadfast in refusing Microsoft’s offer.
You really got to give credit to Yahoo for looking after the welfare of its current employees in the event of the worst scenario. It can’t do anything to stop Microsoft, so the next best thing to do is to protect its current crop of employees. At least after all this is through, Yang could still stand proud and say, he didn’t give up on the battle easily.