Google can cancel deal with Yahoo in case of a takeover

Google can cancel deal with Yahoo in case of a takeover

Yahoo and Google have entered into a four year long deal which would see Google providing advertising on Yahoo Search pages.

However, the search engine giant has the power to cancel this agreement in case majority of Yahoo’s current board is replaced at the behest of a third party.

Carl Icahn is already working on his strategy to replace the Yahoo board with his own panel. He wants the internet media giant to sell itself to Microsoft.

He also said in a statement that if he gets control of the company he would outsource Yahoo’s search to Google in case he could not get Microsoft to come back.

Another aspect of the deal signed between Google and Yahoo would require Yahoo to pay Google up to $250 million in break-up fees if the agreement is terminated.