The Yahoo - Microsoft Search Deal Story

The Curiously FascinatingSTORYof theYahoo – MicrosoftSearch Deal
Compiled by:
Helen M. Overland

The Curiously Fascinating STORY of theYahoo - Microsoft Search Deal
The story you are about to read is a matter of public record.
No matter how fascinating or amusing this story seems to get at times, remember it is recorded in the annals of public history.
Enjoy!
FocusedMarketer.com
August 3, 2009

We will begin our story in early 2008, skipping over a couple of years of on-again, mostly off-again corporate foreplay...
Jan 31, 2008
Microsoft Proposes Acquisition of Yahoo! for $31 per Share
http://www.microsoft.com/presspass/press/2008/feb08/02-01CorpNewsPR.mspx
Feb. 11, 2008
Yahoo! Board of Directors Says Microsoft's Proposal Substantially Undervalues Yahoo!
http://yhoo.client.shareholder.com/PRESS/ReleaseDetail.cfm?ReleaseID=293129
FocusedMarketer.com
August 3, 2009
Photo courtesy AMagill
Timeline

Feb. 11, 2008
Microsoft responds: “The Yahoo! response does not change our belief in the strategic and financial merits of our proposal. As we have said previously, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal.”
http://www.microsoft.com/presspass/press/2008/feb08/02-11msft-response.mspx
FocusedMarketer.com
August 3, 2009
Photo courtesy huggybearjon
Timeline

February 18
Rumors emerge of Yahoo being in talks with AOL
http://news.bbc.co.uk/2/hi/business/7249277.stm

March 11
News Corp says it will not fight Microsoft for Yahoo: "We're not going to get into a fight with Microsoft, which has a lot more money than us," Murdoch told investors at the annual Bear Stearns media conference.
http://www.reuters.com/article/mergersNews/idUSWEN440320080310
FocusedMarketer.com
August 3, 2009
Photo courtesy RogueSun Media
Timeline

April 5, 2008
Microsoft Sends Letter to Yahoo! Board of Directors: “If we have not concluded an agreement within the next three weeks, we will be compelled to take our case directly to your shareholders, including the initiation of a proxy contest to elect an alternative slate of directors for the Yahoo! board.”
http://www.microsoft.com/presspass/press/2008/apr08/04-05LetterPR.mspx
FocusedMarketer.com
August 3, 2009
Photo courtesy e-magic
Timeline

Apr 07, 2008
Yahoo responds to Microsoft’s letter: “Our Board's view of your proposal has not changed. We continue to believe that your proposal is not in the best interests of Yahoo! and our stockholders.”
http://yhoo.client.shareholder.com/PRESS/releasedetail.cfm?ReleaseID=303369
April 9, 2008
Yahoo announces they will start testing Google ads in Yahoo’s search results.
http://yhoo.client.shareholder.com/press/releasedetail.cfm?ReleaseID=303999
FocusedMarketer.com
August 3, 2009
Photo courtesy Ella's Dad
Timeline

Apr 30, 2008
The Wall Street Journal reports that “Microsoft this week indicated a willingness to raise its bid to as much as $33 per Yahoo share,”
http://online.wsj.com/article/SB120958473573757167.html?mod=technology_main_whats_news
FocusedMarketer.com
August 3, 2009
Photo courtesy si_si_ay
Timeline

May 3, 2008
Microsoft Withdraws Proposal to Acquire Yahoo! in a letter to Jerry Yang
http://www.microsoft.com/presspass/press/2008/may08/05-03letter.mspx

May 3, 2008
Yahoo responds: “With the distraction of Microsoft's unsolicited proposal now behind us, we will be able to focus all of our energies on executing the most important transition in our history so that we can maximize our potential to the benefit of our shareholders, employees, partners and users.”
FocusedMarketer.com
August 3, 2009
Photo courtesy The Wolf
Timeline

May 15, 2008
Billionaire investor Carl Icahn writes letter to Yahoo that "I believe that a combination between Microsoft and Yahoo is by far the most sensible path for both companies", and has purchased $1.3B in Yahoo stock
http://www.usatoday.com/money/topstories/2008-05-15-729493711_x.htm

May 15, 2008
Yahoo responds “Conversely, we do not believe it is in the best interests of Yahoo! stockholders to allow you and your hand-picked nominees to take control of Yahoo! for the express purpose of trying to force a sale of Yahoo! to a formerly interested buyer who has publicly stated that they have moved on.”
FocusedMarketer.com
August 3, 2009
Photo courtesy Tambako the Jaguar
Timeline

May 18, 2008
Microsoft and Yahoo back in talks.
http://www.microsoft.com/presspass/press/2008/may08/05-18statement.mspx

May 21, 2008
T. Boone Pickens Picks Up 10 Million Yahoo Shares. There is some discussion that this is done in the hopes that Carl Icahn can work some kind of deal
http://www.cbsnews.com/stories/2008/05/20/paidcontent/main4110359.shtml?source=search_story
FocusedMarketer.com
August 3, 2009
Photo courtesy hans s
Timeline

June 2, 2008
Carl Icahn cleared to invest another $1.5bn in Yahoo
http://www.guardian.co.uk/media/2008/jun/02/yahoo.mediabusiness

June 3, 2009
Lawsuit filed against Yahoo for handling of Microsoft bid
http://www.businessweek.com/the_thread/techbeat/archives/2008/06/judge_unseals_y.html?chan=top+news_top+news+index_technology

June 3, 2008
Carl Icahn is reported to be seeking ousting of Jerry Yang as Yahoo CEO
http://news.cnet.com/8301-10784_3-9958744-7.html
FocusedMarketer.com
August 3, 2009
Timeline

June 12, 2008
Yahoo and Google announce agreement for Yahoo to display Google ads.
http://www.google.com/yahoogooglefacts/

June 12, 2008
Microsoft responds “As stated on May 3rd and reiterated on May 18th Microsoft was not interested in rebidding for all of Yahoo!. Our alternative transaction remains available for discussion.”
http://www.microsoft.com/presspass/press/2008/jun08/06-12statement.mspx
FocusedMarketer.com
August 3, 2009
Photo courtesy e-magic
Timeline

Jul 7, 2008
Microsoft and Carl Icahn appear to be in discussions about a deal with Yahoo.
http://www.microsoft.com/presspass/press/2008/jul08/07-07statement.mspx

Jul 7, 2008
Yahoo responds: “If Microsoft and Mr. Ballmer really want to purchase Yahoo!, we again invite them to make a proposal immediately. And if Mr. Icahn has an actual plan for Yahoo! beyond hoping that Microsoft might actually consummate a deal which they have repeatedly walked away from, we would be very interested in hearing it.”
FocusedMarketer.com
August 3, 2009
Timeline

Jul 12, 2008
Yahoo rejects a joint Microsoft/Icahn offer

July 14, 2008
Carl Icahn responds “I have yet to see a company distort, omit and twist events and facts in the manner that Yahoo! has done”
http://www.nytimes.com/2008/07/14/business/worldbusiness/14iht-yahoo.4.14486514.html

July 14, 2008
Microsoft responds “the enhanced proposal… we submitted late Friday was submitted at the request of Yahoo! Chairman Roy Bostock”
http://www.microsoft.com/Presspass/press/2008/jul08/07-14statement.mspx
FocusedMarketer.com
August 3, 2009
Timeline

July 29, 2008
T. Boone Pickens sells his Yahoo shares at a loss. Is quoted as saying “I think that Yahoo management was pathetic” (editors note: don’t worry, he’s still quite well off)
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/07/28/BUS6120SSI.DTL

October 14, 2008
Google & Yahoo in talks with DOJ to avoid possible antitrust challenge
http://online.wsj.com/article/SB122393254528030085.html?mod=testMod

Oct 20, 2008
Yahoo is reported to be planning cuts, possibly over 1000 people
http://online.wsj.com/article/SB122445684738348449.html
FocusedMarketer.com
August 3, 2009
Timeline

Nov 5, 2008
Citing regulator concerns, Google terminates its ad agreement with Yahoo
http://googlepublicpolicy.blogspot.com/2008/11/ending-our-agreement-with-yahoo.html
FocusedMarketer.com
August 3, 2009
Photo courtesy Mikelo
Timeline

Nov 6, 2008
Yahoo CEO Jerry Yang quoted as saying “To this day the best thing for Microsoft to do is buy Yahoo.”
http://searchengineland.com/yahoo-invites-another-bid-from-microsoft-15383
FocusedMarketer.com
August 3, 2009
Timeline

Nov 7, 2008
Microsoft to Jerry Yang: No.
Well actually: “We are not interested in going back and re-looking at an acquisition. I don't know why they would be either, frankly”
http://www.reuters.com/article/mergersNews/idUSSYD41512320081107
FocusedMarketer.com
August 3, 2009
Timeline

Nov 17, 2008
Jerry Yang steps down as Yahoo CEO

Nov 19, 2008
Microsoft “done with all acquisition discussions with Yahoo”, but still open to “search collaboration”
http://blog.seattlepi.com/microsoft/archives/154844.asp
FocusedMarketer.com
August 3, 2009
Photo courtesy Yodel Anecdotal
Timeline

Dec. 4, 2008
Microsoft appoints Dr. Qi Lu, former VP of Engineering for the Search and Advertising Technology Group at Yahoo!, as Microsoft president of Online Services Group
http://www.microsoft.com/Presspass/press/2008/dec08/12-04CorpDec4PR.mspx
FocusedMarketer.com
August 3, 2009
Timeline

Jan 13, 2009
Carol Bartz becomes Yahoo’s new CEO

January 16, 2009
Microsoft and Yahoo Executives Meet. Again.
http://www.nytimes.com/2009/01/17/technology/companies/17yahoo.html
FocusedMarketer.com
August 3, 2009
Timeline

Apr 10, 2009
Still Talking.
http://kara.allthingsd.com/20090410/yahoos-bartz-and-microsofts-ballmer-finally-talking-about-search-and-advertising-partnership/

May 28, 2009
Microsoft search engine Bing launches
http://www.microsoft.com/presspass/press/2009/may09/05-28NewSearchPR.mspx
FocusedMarketer.com
August 3, 2009
Photo courtesy bpedro
Timeline

Jul 23, 2009
Yahoo Board meets about possible Microsoft deal
http://blogs.barrons.com/techtraderdaily/2009/07/23/wsj-yahoo-board-meeting-today-about-microsoft-deal/
Then, Finally...
FocusedMarketer.com
August 3, 2009
Timeline

Jul 29, 2009
Yahoo! and Microsoft announce an agreement.
http://www.choicevalueinnovation.com/thedeal/announcement/Default.aspx
FocusedMarketer.com
August 3, 2009
Timeline

A Few Interesting Highlights of the Deal
The Yahoo Search engine goes away (as in “bye-bye”)
The Microsoft Bing search engine will be used on Yahoo
Microsoft gets access to Yahoo’s search technology for 10 years
Microsoft will pay traffic acquisition costs to Yahoo! at an initial rate of 88% of search revenue generated on Yahoo!'s sites for the first 5 years
The deal affects only search engines, not email or news, for example
FocusedMarketer.com
August 3, 2009

That’s it, thanks for reading!
Compiled by:
Helen M. Overland(a.k.a. semlady)
FocusedMarketer.com
Follow me! twitter.com/semlady
FocusedMarketer.com
August 3, 2009

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The Yahoo - Microsoft Search Deal Story

by Helen Overland on Aug 03, 2009

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