Icahn Not Crying Over Microsoft

Icahn’s original intention was to take control of Yahoo’s board and forge a deal with Microsoft. While still unhappy with Yahoo’s board, Icahn believes that the Google partnership has potential, according to a Reuters report.

"While the Google deal is not the same as an offer of $34.375 per share for Yahoo, I am continuing to study it, and it might have some merit," Icahn told Reuters.

The Yahoo-Google pact comes with extensive “change of control” provisions that provide an escape hatch should suiters come knocking again for Yahoo. Yahoo or Google would be allowed to terminate the deal if Yahoo is acquired or if the majority of its board is replaced at Yahoo’s upcoming shareholder meeting in August.

Icahn has been waging a proxy battle to make substantial changes to Yahoo’s board. If such changes take place, Google has the chance to walk away from the agreement with Yahoo.

Icahn insinuated that the change of control provision could be reason enough to ease-off on his proxy battle to control the board. Instead, Icahn could accept minority board representation, which would deter Google from terminating the deal, according to Reuters. Icahn says he believes that the Google deal has some potential to turn out to be better than Microsoft’s.