Technology

Yahoo! (YHOO) Gives Up A Mint By Rejecting Microsoft's (MSFT) Second Offer

Microsoft (MSFT) told its employees that it offered Yahoo! (YHOO) $8 billion in cash for 16% of the company and $1 billion to buy its search operations.

According to Reuters, "The proposal also included a revenue-sharing partnership that would have delivered $1 billion a year in additional operating income to Yahoo due in part to a three-year guarantee of better rates for advertisements tied to its search results."

A Yahoo! partnership with Google (GOOG) does not appear nearly so good, although Yahoo! has opted to take it. The world’s largest search company may add $500 million to the operating income at Yahoo!.

The portal’s board screwed the company’s shareholders again.

Douglas A. McIntyre

 

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.