The deal was conditional on the ouster of Yahoo CEO Jerry Yang and the current board of directors. Yahoo was also given less than 24 hours to accept it.
After reviewing the proposal with its legal and financial advisers, Yahooâ€™s board determined that accepting it would not be in the best interest of shareholders. It said the proposal undervalues Yahoo, particularly now that the company has partnered with Google on search.
â€śThis odd and opportunistic alliance of Microsoft and Carl Icahn has anything but the interests of Yahooâ€™s stockholders in mind,â€ť said Yahoo Chairman Roy Bostock in a statement. â€śClearly, Microsoft, having failed to advance in search, is aligned with the short-term objectives of Mr. Icahn to coerce Yahoo into selling its core strategic search assets on terms that are highly advantageous to Microsoft but disadvantageous to Yahoo stockholders.â€ť
Bostock characterized the move by Icahn and Microsoft as â€śerratic and unpredictable behaviorâ€ť and suggested â€śit is ludicrous to think that our board could accept such a proposal.â€ť