Yahoo proxy fight comes closer to resolution

It's almost like a soap opera in the financial sense. The fight between a Microsoft looking for ammunition in its battle against Google, and a Yahoo that is fighting a losing battle in front of a rampaging Google and a fighting Microsoft seems to be approaching a point where Yahoo is still struggling to stay afloat as an independent entity. In the end, it comes down to a point where the shareholders of Yahoo (institutional shareholders) have to decide whether to stay independent or to join up with Microsoft in order to get a better price for their shares:

It looks like the bar room tete-a-tete in Sun Valley, Idaho last week may have helped one of Yahoo Inc.'s biggest institutional shareholders make up his mind.
Friday's news from Bill Miller, chairman and chief investment officer of Legg Mason, that he intends to support Yahoo management in its proxy fight with activist investor Carl Icahn was a big coup for embattled Jerry Yang & Co.
Now that Miller has indicated which way he is voting Legg Mason's 4.4% stake in Yahoo, all eyes will be on other institutions with large holdings in the Internet portal. Perhaps one of the most influential is Gordon Crawford, a portfolio manager at Capital Research Global Investors. Its parent company, Capital Group Cos. has at least three funds with a combined stake of nearly 17% in Yahoo, making it the largest institutional holder. Some pundits have speculated large institutional shareholders do not typically lead activist campaigns. But Miller coming out with a statement in support of Yahoo management two weeks ahead of the much-anticipated shareholder meeting scheduled for August 1 could inspire other funds to try and persuade other investors to take their side.

If it comes to a resolution where the shareholders back Yahoo, then the issue does not get resolved. It is a fact that Yahoo is losing in the fight, and unless this gets resolved, shareholders of Yahoo will not be able to see the value of their shares rising.