The New York Post is reporting that a mutiny is underway in Yahoos boardroom, with concerned Chairman Roy Bostock turning on CEO Jerry Yangs resistance to Microsofts proposed takeover. If Yang successfully weasels out of Microsofts grasp, some of the board is worried that shareholders will sue, especially if Yahoos moves are motivated more by some emotional need to keep Yahoo independent than the more important financial need to keep Yahoo from going dead broke.

According to one source close to the situation, The emotional part of Yang would rather do anything but sell to Microsoft, but he doesnt have the cards to come up with a value-creating, competitive alternative for shareholders.

While Yahoo!s board has a fiduciary duty to maximize shareholder returns, running the risk of derailing a deal is dangerous to Yahoo! shareholders, said Jefferies analyst Youssef Squali.

For now, Bostock and other board members, such as billionaire Ron Burkle, are leading the fight to force Yahoos old guard to do whatever is necessary to ensure the company has a healthy future. Opposing them are Eric Hippeau from Softbank and Robert Kotick, the CEO of Activision.

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