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Microsoft
offered $9 bn for Yahoo! stake, search deal
Indo-Asian News Service
New
York, June 14 (IANS) The final offer Microsoft made to Yahoo!
this week which the beleaguered Internet search company spurned
again would have given it $9 billion in cash and $1 billion
a year in revenue sharing.
Microsoft
had offered $8 billion for a 16 percent stake in Yahoo! and
$1 billion for its search business, Kevin Johnson, a key member
of Microsoft's negotiating team, said in a letter to company
employees Friday.
The
botched deal, before Yahoo! signed an advertising agreement
with Google Thursday, also included revenue-sharing that would
have given Yahoo! an additional operating income of $1 billion
a year.
The
latest proposal from Microsoft was an alternative to its original
unsolicited offer Feb 1 for full acquisition of Yahoo!, valued
at $44.6 billion then, and a revised offer May 3 for around
$50 billion. Yahoo! declined rejected on both occasions, saying
the offers undervalued the company.
Microsoft,
which dominates the software industry but has lagged in online
search advertising, is said to be still open to discussing
its alternative proposal despite Yahoo!'s partnership with
Google.
Yahoo!
agreed to let Google sell ads next to its search results in
a deal, which according to the former, would boost cash flow
by $250 million to $450 million in the first 12 months.
Wall
Street analysts have derided the deal with Google.
"With
the collapse of the Microsoft deal, Yahoo! employees lost
(in addition to shareholders), and we expect Yahoo!'s employee
turnover to accelerate as its share price falls," wrote
Laura Martin of Soleil Securities Group.
News
that three senior Yahoo! executives had resigned broke just
as the alliance with Google made headlines.
Yahoo!
closed Friday at $23.47, down five cents, for a total value
of about $32 billion.
Indo-Asian
News Service
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