Microsoft backs effort to oust Yahoo's board

SAN FRANCISCO — Microsoft Corp. threw its weight behind investor Carl Icahn's effort to dump Yahoo Inc.'s board, saying yesterday that a successful shareholder rebellion would encourage the software maker to renew its bid to buy Yahoo's Internet search engine or possibly the entire company. The unexpected endorsement gives Icahn a carrot to dangle before Yahoo shareholders as he wages a campaign to replace Yahoo's directors at the company's annual meeting Aug. 1. It marks the first time that Microsoft has publicly sided with Icahn since the billionaire investor launched his attempted coup nearly eight weeks ago. The two sides decided they could work together after Icahn held "frequent" discussions with Microsoft Chief Executive Steve Ballmer and some of his top lieutenants during the past week, according to a letter that... [read full story]