Yahoo rejected a joint proposal from Microsoft and Carl Icahn for a complex restructuring of Yahoo that would include the acquisition of Yahoo's search business by Microsoft.
 
Yahoo said that it was given less than 24 hours to accept the proposal, while Microsoft and Icahn said that the fundamental terms of the deal were not negotiable.

The company said that its existing business and its recently signed commercial agreement with Google has “superior financial value and less complexity and risk than the Microsoft/Icahn proposal” and the provided proposal would prevent a potential sale of all of Yahoo “for a full and fair price, including a control premium.”
 
Yahoo also noted that Icahn would install a board directors, “which has virtually no working knowledge of Yahoo's businesses” and the idea to replace the current board and the top management at Yahoo would destabilize the company.