Thursday, December 11, 2008

Yahoo! Removes a Significant Hurdle to an Eventual Deal

My steady drum-beat of Yahoo! news continues. Why? Because the tea leaves continue to point to a major strategic move by Microsoft or others for the struggling company (which, like virtually all other companies these days, continues to shed employees at a troubling pace -- yesterday, 1,500 more).

Specifically, Yahoo! has agreed to revise its controversial severance plan -- which pundits deemed to be an obstacle to a takeover -- by, among other things, limiting the program to 1 year following a change of control (rather than to 2 years). Fewer years, fewer cash liabilities for the company (and new company owners).

Shareholders continue to pressure Yahoo!'s board to make some major strategic move imminently. And, Microsoft is watching ...