Yahoo Settles Proxy Fight With Icahn; What's Next?

After months of battle with activist shareholder Carl Icahn, Yahoo has finally settled the proxy battle that had roiled the company for months. (Full text of the release and the SEC filing after the jump.)

Under an agreement announced early this morning, Icahn agreed to back Yahoo’s current board (minus director and Activision Blizzard CEO Robert Kotick, who will not run for reelection now). In addition, Icahn, who owns a bit under 5% of Yahoo shares, will join Yahoo’s board and two additional Yahoo directors will be chosen from his original slate plus Jonathan Miller, former chairman and CEO of Time Warner’s AOL unit and now a partner in the tech investment firm Velocity Interactive Group. Not least, Yahoo cofounder and CEO Jerry Yang, under fire by shareholders and Icahn for not accepting Microsoft’s various offers to buy the whole company or its search operations, keeps his job—at least for now.