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Microsoft Sets Aside $1.5 Billion to Retain Yahoo Employees

And so the Microhoo saga continues.

The Wall Street Journal reports that Microsoft plans to allocate $1.5 billion dollars to employee retention if the merger goes through. This is according to court documents in a shareholder lawsuit cited by the WSJ. According to CNET:

The documents include transcripts of a March 24 conference call hearing between attorneys for Yahoo and two Detroit-based pension funds. During the call, a Yahoo attorney noted Microsoft had informed the company that it “earmarked $1.5 billion for employee retention at Yahoo,” cites the Journal.

The court transcripts note a Yahoo attorney stating, “there are no more reductions in force planned for the future.”

This, and the fact that Search Engine Land is reporting that the $1.5 billion is not tied to severance packages, should at least let the 13,200 employees of Yahoo rest a little easier.

CNET points out that the per-employee amount of this $1.5 billion works out to about $113,636—that’s more than 100% less than was allocated to Tellme Networks’ employees after Microsoft took over that company.

But so the world turns, and tomorrow will involve further speculation and drama: TechCrunch says they know 8 of the next 12 board members to be nominated by Microsoft to the Yahoo shareholders in a hostile takeover, so that should give us something to chew on for a while.

  • http://www.newhomessection.com Jayson

    Well, if you ask me, Microsoft sure knows how to stay in the news. It seems like they’re trying to get everyone on their side…making everyone at Yahoo believe that the merger is the best thing for the company, it’s employees and it’s shareholders.

  • http://mp3leben.com Tiffany

    Microsoft really has taugh willingness to get Yahoo…Anyway, I think it will give prosperity advance to the Yahoo employees for this moment. But, will it continue when both companies merged?