Yahoo!'s Board Defections Begin (YHOO, MSFT)
Yahoo Inc. (NASDAQ: YHOO) submitted and SEC filing today after the close that Edward Kozel resigned from the board of directors. This filing said he had originally intended to leave in February but decided to stay on after Microsoft (NASDAQ: MSFT) made its offer for the company.
It would be nice to know if Mr. Kozel was one of the board members that had allegedly sought independent legal counsel after it became known that Yang was going to turn down Ballmer’s buyout offer.
As a result of this exit, Yahoo! has cut the size of its board of directors from 10 down to 9. If Mr. Yang doesn’t take this opportunity to add on one of the Carl Icahn designates, then he is just asking for even more trouble while he sticks his head in the sand.
It’s up to you whether or not to believe the company on the timing and more. Our bet is that more board members look for an exit.
Yahoo! also filed to delay its annual meeting to around the end of July. It cited the Icahn proxy fight.
Jon C. Ogg
May 22, 2008