Digital Crosstalk

Microsoft’s advances cost Yahoo $79 million

Posted by Brian | Filed under blogging

Last year Microsoft offered to buy Yahoo several times, including once at $33 a share, a figure the search engine should have jumped at. A new report from the SEC has revealed that during this period Yahoo paid out $79 million obtaining legal and financial advice to try and find a way to keep Microsoft at bay.

Yahoo was obviously tempted by the financial aspect but for reasons unknown did not want to sell to the software giant. The financial advisors, most of whom were part of Goldman Sachs and the Lehman Brothers, were responsible for the Yahoo-Google proposal which eventually fell through. The financial advisors also instigated talks with AOL in an attempt to find an alternative for Microsoft’s $47.5 billion offer.

Of course, talks fell through with both of the other companies; Google walking away just hours after a supposed deal had been struck.

The rejection of the deal also saw five separate stockholder lawsuits filed against Yahoo and is thought to have led to the resignation of Jerry Yang.

All that said, Microsoft is still looking for a way to lure Yahoo in. CEO Steve Ballmer has said that he is still looking for ways for the two companies to work together in an attempt to fight off Google.

No doubt Steve Ballmer is waiting to see how Yahoo’s new CEO Carol Bartz will fair out. Last week she re-organised the company’s structure and is expected to make further significant changes over the coming weeks.

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1. Yahoo cuts 1500 jobs as it announces fall in profits
2. Will Google and AOL part ways?
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Tags: digital