Microsoft: Search-only deal was Bostock's idea

Microsoft said its proposal made Friday to purchase Yahoo's search business was actually the idea of Yahoo Chairman Roy Bostock.

Microsoft's proposal made Friday to purchase Yahoo's search business was actually the idea of Yahoo Chairman Roy Bostock, and Yahoo has publicly "mischaracterized" the discussion surrounding the proposal, Microsoft said Monday.

In a statement, Microsoft claims that on Thursday, July 10, Bostock called the office of Microsoft CEO Steve Ballmer to arrange a call, on which he told Ballmer that "with substantial guarantees on the table and an increase in the TAC (traffic acquisition cost) rate, there are the pillars of a search-only deal to be done."

"Mr. Bostock encouraged Mr. Ballmer to submit a new proposal to Yahoo for a search-only deal reflecting these terms," according to Microsoft.

Yahoo said Saturday night that it rejected a joint proposal made Friday night by Microsoft and investor Carl Icahn that called for a restructuring of Yahoo, the removal of its board and management team, and the sale of Yahoo's search business -- which the proposal devalued -- to Microsoft. At the time, Yahoo said it was given only 24 hours to reject or accept the proposal.

But Microsoft said in its statement that Yahoo "mischaracterized" the discussion as "a take it or leave it ultimatum, rather than a timetable in order to move forward to intensive negotiations." The proposal also did not call for any changes to Yahoo's governance, Microsoft said.

Upon Bostock's urging Thursday, Microsoft proposed an "enhanced search transaction" to include "significant revenue guarantees, higher TAC rates, an equity investment and an option for Yahoo to extend the agreement over a 10 year period," Microsoft said.

"At the time Microsoft submitted its enhanced proposal, Microsoft asked that Yahoo confirm whether it would agree that the enhancements were sufficient to form the basis for the parties to engage in negotiations over the weekend on a letter of intent and more detailed term sheets," according to Microsoft. However, Yahoo told Microsoft on Saturday it had rejected the deal, Microsoft said.

Microsoft submitted its first unsolicited bid to acquire Yahoo on Feb. 1, but the two companies have been unable to come to an agreement despite months of negotiations. Most recently, Yahoo has said publicly it is willing to sell the company to Microsoft for US$33 a share, and is not interested in deal to sell only its search business.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Elizabeth Montalbano

IDG News Service
Show Comments

Cool Tech

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Breitling Superocean Heritage Chronographe 44

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?