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

Photo courtesy AMagill

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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

Photo courtesy huggybearjon

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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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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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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

Photo courtesy si_si_ay

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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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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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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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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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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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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

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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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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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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

Photo courtesy Yodel Anecdotal

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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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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

Photo courtesy Yodel Anecdotal

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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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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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Jul 29, 2009 Yahoo! and Microsoft announce an

agreement. http://www.choicevalueinnovation.com/thedeal/announcement/Default.aspx

Timeline

Photo courtesy Yodel Anecdotal

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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