Yahoo Spent $79 Million To Fend Off Microsoft

Apologetics Blog writes "Getting bought by one of the biggest companies in the world turns out to be a rather costly thing. Last year when Microsoft was in talks with Yahoo regarding a possible buy-out, in a report recently filed with the Securities and Exchange Commission, Yahoo announced that it cost them $79 million to fight off Microsoft. Most of that money was spent on advisors who examined Microsoft's proposals, and the way it would impact on Yahoo's search agreement with Google. The deal fizzled out when federal antitrust regulators said it would challenge any deal made between the two companies."

Comments

Re:Google - Yahoo Sale?

[larry bagina]

The google/yahoo deal was an advertising agreement, not a merger/acquisition.

Just in cause anyone wants it....

[SGDarkKnight]

here is the link to the atricle that actually talks about the $79 Million dollar tab, with all sorts of links to all the related article stuff...

http://news.cnet.com/8301-1023_3-10184454-93.html?tag=mncol;posts

Re:advisors

[bogaboga]

Not only that.

I work for a major consulting firm handling bank accounts on the west coast. Consultants are not cheap.

My company charges in excess of $350/hr on top of mileage and any extra work that may cause delay is charged at $519/hr. But again, we handle very important and sensitive data/work.

Of course I make much less and sometimes, there might not be any serious work for months.

$79 million for everything

[UnknowingFool]

the increases in outsourced service provider expenses were primarily the result of incremental costs incurred in general and administrative expense of $79 million for 2008 for outside advisors related to Microsoft's proposals to acquire all or a part of the Company, other strategic alternatives, including the Google agreement, the proxy contest, and related litigation defense costs.

The way I read it, there's a lot of fees rolled into one.

• consulting to analyze the MS offer or find an alternative (Google)
• lawyers fees once they decided to reject the offer
• consulting and lawyers fees to fight Carl Icahn's involvement (proxy contest) into the MS-Yahoo deal when he tried to have the board replaced
• administrative fees to set up the Google deal (a deal worth $250 million to $450 million per year would require some initial investment)
• lawyers fees to setup the Google deal

Some of you may ask why so many lawyers. Well there a 3 separate legal issues here. Fight MS, Deal with Google, and fight Carl Icahn. You might get the same lawyers to fight MS and figure out the Google deal, but they really are different areas of the law and the large scope would mean you need more more bodies. For the proxy contest, you probably want a law firm that specializes in that.

Re:fiduciary responsibility?

[Shakrai]

I'm sorry but HAHAHAHAHAHA! Did you say MSFT overtakes them? Have you TRIED MSFT Search? Hell it was shit 10 years ago and it is shit+ extra stink now. The searches are total crap and most of what you find is simply crap trying to sell you junk that has NOTHING to do with what you are looking for.

I'm talking about the odds of success which strange as it may seem have little to do with the quality of Microsoft search. I hate Microsoft as much as the next guy but if you look at it objectively I think it was a bad deal for Yahoo's shareholders when management rejected Microsoft's offer. Microsoft offered $33/share, which was more than they've been valued since 2006 (and only for a brief time in 2006 at that).

Do you honesty see Yahoo crawling back up to $33/share on their own with either their current product portfolio or anything they have on the drawing board? I hear a lot of people bashing Microsoft but I don't hear too many people defending Yahoo. I still say I would have been pretty pissed if I was a Yahoo shareholder.

136th largest

[dotwhynot]

Getting bought by one of the biggest companies in the world turns

Microsoft is the worlds 136th largest company