Yahoo! (represented by Board Chairmen Roy Bostock and CEO Jerry Yang) has sent a letter to their Shareholders, to finally clear things on what’s has been really going on with regards to the “alleged renewed talks” happening between Yahoo and Microsoft. The letter specifically states:
- The Yahoo!-Google Agreement is Financially Attractive and Strikes the Right Strategic Balance – this is of course in defense of the recent paid search ad deal that Yahoo has entered into with Google. Yahoo! cited the deal’s non-exclusivity while at the same time helping Yahoo position itself towards achieving its objective of becoming the web’s “starting point”, while at the same time getting paid by Google for running Google ads.
- The Yahoo!-Google Agreement Does More for Stockholder Value than Microsoft’s Search-Only Hybrid Proposal – this is in answer to the recent talks circulating around the web that Microsoft is keen on getting Yahoo’s search business. Yahoo argues that it will leave Yahoo! with no operational control of its search assets and technology. This is tantamount to Yahoo contradicting its goal of becoming a leader in the convering search and display advertising business (like the Google paid search would help them achieve this?) Likewise the said Microsoft proposal would have no impact on Yahoo’s current finances.
- Your Current Board of Directors Has the Knowledge, Experience and Commitment to Best Represent Your Interests and Maximize Stockholder Value – this is of course in response to Mr. Icahn’s threat of overthrowing the current Yahoo! Board and replacing it with his selected Board members.
And finally, with the hope if putting a rest to this issues surrounding the company, Yahoo! asked its shareholders:
We strongly urge you to vote your WHITE Proxy Card today for your current board of directors.
Will the Yahoo! Shareholders heed Yahoo’s plea (Or should we say Roy and Jerry’s?) and retain the current board? That we will have to see in the coming days.