Let's make a deal.

Yahoo made a peace agreement with investor Carl Icahn, who for the last several months sought to oust its board and seize control of the company.

Under the terms of the agreement, eight members of Yahoo's board will pursue re-election. Two members will be selected from a list of nine candidates handpicked by Icahn, and Icahn himself will be appointed to the board.

The deal was designed to defend Yahoo against any attempt at a board ousting on August 1, the date of its 2008 shareholders meeting, wrote the Globe and Mail. After that day, Yahoo and Time Warner — which has also suffered Icahn's wrath — are expected to decide whether Time Warner will incorporate AOL into the Yahoo family.

Last month Yahoo turned down a takeover bid from Microsoft. Icahn later partnered with Microsoft to propose a corporate restructuring and search buyout to Yahoo in July; the latter refused again.