It is over. The proxy fight between Yahoo and Carl Icahn has ended, not with a bang but whimper.

Yahoo this morning announced that the two sides had settled with a compromise board, our own Joe Weisenthal reports at PaidContent. Icahn himself elected to the company's board at the upcoming August 1 shareholder meeting. The board will be expanded to 11 member, with the extra two board members appointed by the board from Icahn's list of candidates, giving Icahn 3 of the eleven seats.

As we said last week, Icahn's bid for control of the company seemed to suffer a mortal blow when Legg Mason's Bill Miller announced he would support the incumbent slate. All along Icahn's efforts was subject to a serious weakness: the dependence on selling the company to Microsoft, which has been playing its own cards close to the chest. It was never really clear whether Microsoft still wanted Yahoo or how far they would go to get it.

Yahoo Settles With Carl Icahn; Icahn To Control 3 Of 11 Seats [Paid Content]