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

The Curiously Fascinating STORY of theYahoo - Microsoft Search DealThe 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.comAugust 3, 2009

The Curiously Fascinating STORY of theYahoo - Microsoft Search DealWe 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 Sharehttp://www.microsoft.com/presspass/press/2008/feb08/02-01CorpNewsPR.mspxFeb. 11, 2008 Yahoo! Board of Directors Says Microsoft's Proposal Substantially Undervalues Yahoo!http://yhoo.client.shareholder.com/PRESS/ReleaseDetail.cfm?ReleaseID=293129FocusedMarketer.comAugust 3, 2009Photo courtesy AMagillTimeline

The Curiously Fascinating STORY of theYahoo - Microsoft Search DealFeb. 11, 2008Microsoft 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.mspxFocusedMarketer.comAugust 3, 2009Photo courtesy huggybearjonTimeline

The Curiously Fascinating STORY of theYahoo - Microsoft Search DealFebruary 18 Rumors emerge of Yahoo being in talks with AOLhttp://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/idUSWEN440320080310FocusedMarketer.comAugust 3, 2009Photo courtesy RogueSun MediaTimeline

The Curiously Fascinating STORY of theYahoo - Microsoft Search DealApril 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.mspxFocusedMarketer.comAugust 3, 2009Photo courtesy e-magicTimeline

The Curiously Fascinating STORY of theYahoo - Microsoft Search DealApr 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=303369April 9, 2008 Yahoo announces they will start testing Google ads in Yahoo’s search results. http://yhoo.client.shareholder.com/press/releasedetail.cfm?ReleaseID=303999FocusedMarketer.comAugust 3, 2009Photo courtesy Ella's DadTimeline

The Curiously Fascinating STORY of theYahoo - Microsoft Search DealApr 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_newsFocusedMarketer.comAugust 3, 2009Photo courtesy si_si_ayTimeline

The Curiously Fascinating STORY of theYahoo - Microsoft Search DealMay 3, 2008 Microsoft Withdraws Proposal to Acquire Yahoo! in a letter to Jerry Yanghttp://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.”http://yhoo.client.shareholder.com/press/releasedetail.cfm?ReleaseID=308131FocusedMarketer.comAugust 3, 2009Photo courtesy The WolfTimeline

The Curiously Fascinating STORY of theYahoo - Microsoft Search DealMay 15, 2008Billionaire 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, 2008Yahoo 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.”http://yhoo.client.shareholder.com/press/releasedetail.cfm?ReleaseID=310754FocusedMarketer.comAugust 3, 2009Photo courtesy Tambako the JaguarTimeline

The Curiously Fascinating STORY of theYahoo - Microsoft Search DealMay 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 dealhttp://www.cbsnews.com/stories/2008/05/20/paidcontent/main4110359.shtml?source=search_storyFocusedMarketer.comAugust 3, 2009Photo courtesy hans sTimeline

The Curiously Fascinating STORY of theYahoo - Microsoft Search DealJune 2, 2008 Carl Icahn cleared to invest another $1.5bn in Yahoohttp://www.guardian.co.uk/media/2008/jun/02/yahoo.mediabusiness June 3, 2009 Lawsuit filed against Yahoo for handling of Microsoft bidhttp://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 CEOhttp://news.cnet.com/8301-10784_3-9958744-7.htmlFocusedMarketer.comAugust 3, 2009Photo courtesy Tambako the JaguarTimeline

The Curiously Fascinating STORY of theYahoo - Microsoft Search DealJune 12, 2008Yahoo and Google announce agreement for Yahoo to display Google ads. http://yhoo.client.shareholder.com/press/releasedetail.cfm?ReleaseID=316450http://www.google.com/yahoogooglefacts/ June 12, 2008Microsoft 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.mspxFocusedMarketer.comAugust 3, 2009Photo courtesy e-magicTimeline

The Curiously Fascinating STORY of theYahoo - Microsoft Search DealJul 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.”http://yhoo.client.shareholder.com/press/releasedetail.cfm?ReleaseID=319847FocusedMarketer.comAugust 3, 2009Photo courtesy Tambako the JaguarTimeline

The Curiously Fascinating STORY of theYahoo - Microsoft Search DealJul 12, 2008 Yahoo rejects a joint Microsoft/Icahn offerhttp://yhoo.client.shareholder.com/press/releasedetail.cfm?ReleaseID=321697 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.mspxFocusedMarketer.comAugust 3, 2009Timeline

The Curiously Fascinating STORY of theYahoo - Microsoft Search DealJuly 29, 2008T. 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, 2008Google & Yahoo in talks with DOJ to avoid possible antitrust challengehttp://online.wsj.com/article/SB122393254528030085.html?mod=testMod Oct 20, 2008 Yahoo is reported to be planning cuts, possibly over 1000 peoplehttp://online.wsj.com/article/SB122445684738348449.htmlFocusedMarketer.comAugust 3, 2009Timeline

The Curiously Fascinating STORY of theYahoo - Microsoft Search DealNov 5, 2008 Citing regulator concerns, Google terminates its ad agreement with Yahoohttp://yhoo.client.shareholder.com/PRESS/releasedetail.cfm?ReleaseID=345734http://googlepublicpolicy.blogspot.com/2008/11/ending-our-agreement-with-yahoo.htmlFocusedMarketer.comAugust 3, 2009Photo courtesy MikeloTimeline

The Curiously Fascinating STORY of theYahoo - Microsoft Search DealNov 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-15383FocusedMarketer.comAugust 3, 2009Timeline

The Curiously Fascinating STORY of theYahoo - Microsoft Search DealNov 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/idUSSYD41512320081107FocusedMarketer.comAugust 3, 2009Timeline

The Curiously Fascinating STORY of theYahoo - Microsoft Search DealNov 17, 2008 Jerry Yang steps down as Yahoo CEOhttp://yhoo.client.shareholder.com/press/releasedetail.cfm?ReleaseID=348088 Nov 19, 2008 Microsoft “done with all acquisition discussions with Yahoo”, but still open to “search collaboration” http://blog.seattlepi.com/microsoft/archives/154844.aspFocusedMarketer.comAugust 3, 2009Photo courtesy Yodel AnecdotalTimeline

The Curiously Fascinating STORY of theYahoo - Microsoft Search DealDec. 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 Grouphttp://www.microsoft.com/Presspass/press/2008/dec08/12-04CorpDec4PR.mspxFocusedMarketer.comAugust 3, 2009Timeline

The Curiously Fascinating STORY of theYahoo - Microsoft Search DealJan 13, 2009 Carol Bartz becomes Yahoo’s new CEOhttp://yhoo.client.shareholder.com/PRESS/releasedetail.cfm?ReleaseID=359016 January 16, 2009 Microsoft and Yahoo Executives Meet. Again. http://www.nytimes.com/2009/01/17/technology/companies/17yahoo.htmlFocusedMarketer.comAugust 3, 2009Photo courtesy Yodel AnecdotalTimeline

The Curiously Fascinating STORY of theYahoo - Microsoft Search DealApr 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 launcheshttp://www.microsoft.com/presspass/press/2009/may09/05-28NewSearchPR.mspxFocusedMarketer.comAugust 3, 2009Photo courtesy bpedroTimeline

The Curiously Fascinating STORY of theYahoo - Microsoft Search DealJul 23, 2009 Yahoo Board meets about possible Microsoft dealhttp://blogs.barrons.com/techtraderdaily/2009/07/23/wsj-yahoo-board-meeting-today-about-microsoft-deal/Then, Finally...FocusedMarketer.comAugust 3, 2009Timeline

The Curiously Fascinating STORY of theYahoo - Microsoft Search DealJul 29, 2009 Yahoo! and Microsoft announce an agreement. http://www.choicevalueinnovation.com/thedeal/announcement/Default.aspxFocusedMarketer.comAugust 3, 2009Photo courtesy Yodel AnecdotalTimeline

The Curiously Fascinating STORY of theYahoo - Microsoft Search DealA Few Interesting Highlights of the DealThe Yahoo Search engine goes away (as in “bye-bye”)The Microsoft Bing search engine will be used on YahooMicrosoft gets access to Yahoo’s search technology for 10 yearsMicrosoft 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 yearsThe deal affects only search engines, not email or news, for exampleFocusedMarketer.comAugust 3, 2009

The Curiously Fascinating STORY of theYahoo - Microsoft Search DealThat’s it, thanks for reading!Compiled by: Helen M. Overland(a.k.a. semlady)FocusedMarketer.comFollow me! twitter.com/semladyFocusedMarketer.comAugust 3, 2009