Why Yahoo's Yang Is Holding Out

Though beset by restive shareholders and pressure from Carl Icahn, Yang has his reasons to push for a better deal from Microsoft
Yahoo co-founder and Chief Executive Officer Jerry Yang Alex Wong/Getty Images

For more than a month, Yahoo (YHOO) co-founder and Chief Executive Jerry Yang has endured a withering attack by shareholders who say he let a $47.5 billion acquisition bid by Microsoft slip through his fingers. The apparent obstinacy, which Microsoft (MSFT) says fueled its decision to walk away on May 3, was laid bare in a shareholder lawsuit. The documents, unsealed June 2, allege Yang and Yahoo's board created deal-killing measures, including an expensive employee severance package.

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