Download - The Yahoo - Microsoft Search Deal Story
THE CURIOUSLY FASCINATING
STORYof the
YAHOO – MICROSOFT
SEARCH DEALCompiled by:
Helen M. Overland
April 12, 2023
FocusedMarketer.com
THE CURIOUSLY FASCINATING STORY OF THE
YAHOO - 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!
April 12, 2023
FocusedMarketer.com
THE CURIOUSLY FASCINATING STORY OF THE
YAHOO - MICROSOFT SEARCH DEAL
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 Sharehttp://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
Timeline
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THE CURIOUSLY FASCINATING STORY OF THE
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Feb. 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.mspx
Timeline
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THE CURIOUSLY FASCINATING STORY OF THE
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February 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/idUSWEN440320080310
Timeline
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THE CURIOUSLY FASCINATING STORY OF THE
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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
Timeline
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THE CURIOUSLY FASCINATING STORY OF THE
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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
Timeline
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THE CURIOUSLY FASCINATING STORY OF THE
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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
Timeline
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THE CURIOUSLY FASCINATING STORY OF THE
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May 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=308131
Timeline
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THE CURIOUSLY FASCINATING STORY OF THE
YAHOO - MICROSOFT SEARCH DEAL
May 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=310754
Timeline
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THE CURIOUSLY FASCINATING STORY OF THE
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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
Timeline
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THE CURIOUSLY FASCINATING STORY OF THE
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June 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.htmlTimeline
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THE CURIOUSLY FASCINATING STORY OF THE
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June 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, 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
Timeline
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THE CURIOUSLY FASCINATING STORY OF THE
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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.”
http://yhoo.client.shareholder.com/press/releasedetail.cfm?ReleaseID=319847
Timeline
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THE CURIOUSLY FASCINATING STORY OF THE
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Jul 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.mspx
Timeline
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THE CURIOUSLY FASCINATING STORY OF THE
YAHOO - MICROSOFT SEARCH DEAL
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 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.html
Timeline
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THE CURIOUSLY FASCINATING STORY OF THE
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Nov 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.html
Timeline
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THE CURIOUSLY FASCINATING STORY OF THE
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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
Timeline
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THE CURIOUSLY FASCINATING STORY OF THE
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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
Timeline
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THE CURIOUSLY FASCINATING STORY OF THE
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Nov 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.asp
Timeline
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THE CURIOUSLY FASCINATING STORY OF THE
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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
Timeline
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THE CURIOUSLY FASCINATING STORY OF THE
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Jan 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.html
Timeline
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THE CURIOUSLY FASCINATING STORY OF THE
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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
launcheshttp://www.microsoft.com/presspass/press/2009/may09/05-28NewSearchPR.mspx
Timeline
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THE CURIOUSLY FASCINATING STORY OF THE
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Jul 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...
Timeline
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THE CURIOUSLY FASCINATING STORY OF THE
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Jul 29, 2009 Yahoo! and Microsoft announce an
agreement. http://www.choicevalueinnovation.com/thedeal/announcement/Default.aspx
Timeline
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THE CURIOUSLY FASCINATING STORY OF THE
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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
April 12, 2023
FocusedMarketer.com
THE CURIOUSLY FASCINATING STORY OF THE
YAHOO - MICROSOFT SEARCH DEAL
That’s it, thanks for reading!
Compiled by:
Helen M. Overland (a.k.a. semlady)
FocusedMarketer.comFollow me! twitter.com/semlady