Sunnyvale (CA) - Yahoo’s stock may be in crapper, Microsoft may have not received anything from Yahoo and Google may have left the table with empty hands, but there were some who benefitted from Yahoo’s business odyssey. The company’s 10-Q form filed with the SEC today states that the company paid outside advisors a total of $110 million for services relating to negotiations with Microsoft and Google. Quote:
“Income from operations for the three and nine months ended September 30, 2008 includes incremental costs of $37 million and $73 million, respectively, for outside advisors related to Microsoft Corporation's ("Microsoft") 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.”
Microsoft told Yahoo on February 1 on of this year that it would be interested in acquiring Yahoo for about $43 billion. Yahoo apparently delayed the negotiations in an effort to increase the price of the company – Yahoo made a brave move and struck and alliance with Google. Microsoft eventually walked away from the deal, the Google agreement is cancelled and Yahoo is now asking Microsoft again to buy the company – apparently with little success.
The whole Microhoogle drama has enough material for a soap opera, showcasing a Yahoo team that got stuck with a bluff and gambled with opponents that were a bit out of its league. Google and Microsoft may have left the table with little damage and hardly could be described as winners. If someone won, than we would have to look at the advisors. $110 million isn’t bad pay considering the mess that has been created for Yahoo. And there may be more bills to pay: The company is currently defending itself in five shareholder lawsuits that were filed because of the failed negotiations.
“Income from operations for the three and nine months ended September 30, 2008 includes incremental costs of $37 million and $73 million, respectively, for outside advisors related to Microsoft Corporation's ("Microsoft") 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.”
Microsoft told Yahoo on February 1 on of this year that it would be interested in acquiring Yahoo for about $43 billion. Yahoo apparently delayed the negotiations in an effort to increase the price of the company – Yahoo made a brave move and struck and alliance with Google. Microsoft eventually walked away from the deal, the Google agreement is cancelled and Yahoo is now asking Microsoft again to buy the company – apparently with little success.
The whole Microhoogle drama has enough material for a soap opera, showcasing a Yahoo team that got stuck with a bluff and gambled with opponents that were a bit out of its league. Google and Microsoft may have left the table with little damage and hardly could be described as winners. If someone won, than we would have to look at the advisors. $110 million isn’t bad pay considering the mess that has been created for Yahoo. And there may be more bills to pay: The company is currently defending itself in five shareholder lawsuits that were filed because of the failed negotiations.