• The New York Times, Tuesday, July 22, 2008 9:30 AM

With many shareholders angry at Yahoo's lagging performance and falling share price, Yahoo's future remains up in the air. Pressure on its board and management to deliver positive results quickly, or resume negotiations with Microsoft, is likely to continue. The company is scheduled to report its second-quarter earnings after the market closes today.

Activist investor Carl Icahn, who had built his campaign on the promise that he would be able to sell all or part of Yahoo to Microsoft, is likely to continue agitating from the inside, and his presence on the board could make a deal with Microsoft more likely. "All scenarios are still on the table," said Ross Sandler, an analyst with RBC Capital Markets.

In a statement Monday, Icahn struck a conciliatory note, yet he made it clear that he has not abandoned hopes for a deal with Microsoft. "While I continue to believe that the sale of the whole company or the sale of its search business in the right transaction must be given full consideration, I share the view that Yahoo's valuable collection of assets positions it well to continue expanding its online leadership and enhancing returns to stockholders," Icahn said.

Read the whole story at The New York Times »