Meanwhile… Back At Yahoo….

…. The fun continues. You thought it was over now that the shareholder meeting has come and gone. No sir. The circus is back in town!

First comes the news that Yahoo spent $36 million on advisers during the first six months of the year because of the Microhoo fiasco:

“Yahoo leaned on investment banks Goldman Sachs Group Inc., Lehman Brothers Holdings Inc. and Moelis & Co., and the law firm Skadden Arps Slate Meagher & Flom, after Microsoft made its initial $44.6-billion offer, which was made public in February.”

Oh yeah, they’ve been sued by sharholders too:

“Yahoo’s SEC filing detailed several shareholder lawsuits claiming that Yahoo executives and board members breached fiduciary duties during the buyout negotiations. The lawsuits claim that Yahoo’s search advertising partnership with Google Inc. and its updated severance plans for employees were designed to dampen Microsoft’s interest in acquiring the Silicon Valley pioneer, according to the filing.”

Lovely news if you’re a Yahoo investor. If you want to read all of the gory news, here’s their 10Q.

Oh yeah, then there’s that Carl Icahn fellow. It looks like the two people who will join him on the Yahoo board have been selected. The lucky people are John Chapple and Frank Biondi Jr.:

Biondi is a senior managing director of investment adviser WaterView Advisors, former chairman and chief executive of Universal Studios, and former head of Viacom. Two years ago, Icahn tagged Biondi as his Time Warner CEO replacement, if he was successful in gaining control of the media company via a proxy fight, which ultimately was not successful.

Chapple, president of Hawkeye Investments in Redmond, Wash., and former CEO of Nextel Partners, was also tagged to be on Microsoft’s proxy slate of dissident directors, when the software giant was entertaining making a run against Yahoo’s board to push its unsolicited buyout bid for Yahoo forward, according to a source familiar with Microsoft’s slate.

All of this means that Yahoo will be in the headlines for months to come. Which is great for me as this is a really cool soap opera.

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