It’s times like this, that I take my hat off to mainstream media. The ability to keep up with the ongoing Yahoo/Microsoft/Icahn love triangle is something MSM journalists have honed down the years–even if it takes two New York Times staff writers to keep up!
The bottom line is that Microsoft (and Carl Icahn) last week submitted a new, sweetened bid for Yahoo’s search business.
The offer on the table was a revision of Microsoft’s previous bid for Yahoo’s search business, in which Yahoo would effectively outsource the advertising that runs alongside search results. This time, however, Microsoft would shorten the 10-year agreement to five years, while guaranteeing that Yahoo would earn $2.3 billion in annual revenue for five years, up from the three-year guarantee of the original proposal. The contract could be renewed for another five years.
Microsoft also proposed having Yahoo sell its Asian assets. It also proposed making an equity investment of $3.9 billion and a preferred debt investment of $2.8 billion.
That was rejected by Yahoo on Saturday. However, the struggling company turned around and suggested it would be interested in Microsoft’s original acquisition offer…
Yahoo’s board convened with its advisers on Saturday in a meeting that lasted more than four hours before informing Microsoft that it had rejected the bid. It then reiterated its willingness to sell the whole company at $33 a share.
“While this type of erratic and unpredictable behavior is consistent with what we have come to expect from Microsoft, we will not be bludgeoned into a transaction that is not in the best interests of our stockholders,” Mr. Bostock said in a statement.
That’s Yahoo chairman Roy Bostock accusing Microsoft of being erratic and unpredictable! I may send him this cartoon: