Yahoo Trying To Again Reassure Investors

June 26, 12:28 PMBusiness ExaminerDarrell Proctor

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Carl Icahn wants to take control of Yahoo.

When your stock price is at $22, and that's a third less than another company offered per share, and people perceive that your brand is getting overrun by the competition ... well, you've got to do something to reassure your investors.

That's what Yahoo tried to do this week with a letter to shareholders. The Sunnyvale, Calif.-based company told investors that a proposed deal with Microsoft would have locked Yahoo into a 10-year search partnership. It also would have given Microsoft veto power over any sale of the remaining parts of Yahoo.

In essence, what's happening is that the current Yahoo board - running for re-election against a rival slate from investor Carl Icahn - wants shareholders to believe the current board is the best group to run the company.

Will it work? Well, we should know Aug. 1 (if not sooner), when the board election is held at the company's annual meeting.