Edgelings

Yahoo Amends Controversial Severance Program

Management had a poison pill plan in place to fend off and take-over of the company, but Yahoo investors refused to swallow. The controversial severance program, designed to make the company unattractive to a possible buyer, has been shot down by an investor lawsuit. While some industry watchers believe the plan was a maneuver by Yahoo management to save their own skins in the face of terrible performance by the company, if enacted the plan would most certainly have encouraged a brain-drain flight of top people in the face of a take-over.  This poison pill clause was one of the biggest stumbling blocks to negotiating a buy price and with it out of the way, watch for things to move quickly from here.