Microsoft, Icahn Align Interests on Yahoo

Microsoft (MSFT) now says that eforts by dissident Yahoo shareholder Carl Icahn to replace the Yahoo (YHOO) board could accelerate a Microhoo merger.

We haven't been posting every twist and turn in the seemingly eternal on-again, off-again Microsoft-Yahoo takeover saga. But this morning's developments are significant. Microsoft now says that efforts by dissident Yahoo shareholder Carl Icahn to replace the Yahoo board could accelerate a Microhoo merger. In throwing its weight behind Icahn's proxy battle for control of the Yahoo board, Microsoft is taking its case to Yahoo's shareholders, who may soon have the chance to cast the deciding vote in whether the company will continue on its own or be bought by Microsoft.

Check out the full statements from Microsoft and Icahn for more details. Meanwhile, the UK's Times Online reports that Yahoo spent the July 4 holiday weekend in discussions with Goldman Sachs and Time Warner about defensive partnerships.