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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."
Getting bought by one of the biggest companies in the world turns out to be a rather costly thing.
That should read "Not getting bought out..." since the deal never went through. If they had only just given in to Microsoft... then all it would have cost them is their souls.
How can that possibly cost that much?
They hired Dogbert Consulting?
I want peace on earth and goodwill toward man.
We are the United States Government! We don't do that sort of thing.
If my math is correct, that's about 54 man-years at $500/hour for 8 hours a day, 365 days a year. Wow.
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The google/yahoo deal was an advertising agreement, not a merger/acquisition.
Do you even lift?
These aren't the 'roids you're looking for.
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
maybe they searched for "cheap advisors" and accidentally clicked the sponsored result.
Do you even lift?
These aren't the 'roids you're looking for.
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.
When our company took over a company worth £43mill it cost us £1mill in legal fees etc. etc. to get everything looked over and sorted out.
I think for something of Yahoo's worth, $79 million isn't massively unrealistic. I'd say it's not unreasonable either, it is to most people including me, but in the world of business I'd say it's probably not.
Still Yahoo, perhaps the most business plan challenged IT company in the last few years, turning down Micrososft, going for Google, getting told to f off by Google because of the potential for monopoly problems and then running back to Microsoft and being told to f off by Micrososft too.
Ballmer is probably laughing his arse off, they offered over the odds to pay for the company but if they had paid that much and then seen the resulting decline of it's worth due to a number of factors from Google to the financial crisis then they'd have wasted literally billions.
Actually, compared to Microsoft's flailing in search, Yahoo are a pretty solid number two.
Hang on, let me rephrase that.
Microsoft has been greedily eyeing up Yahoo's number two slot.
Oh, forget it.