Over the past several weeks the world has been doing its collective Ricky Ricardo impression to demand reasons for why Yahoo did not accept Microsoft's invitations and prods. The CW appears to be that it was a fit of ego and MSFT hatred, rather than a focus on shareholder value.
Not surprisingly, the Yahoo board disagrees, and actually put out a 32 page powerpoint to splain itself. You can get it here, or just read on for the brief Vitameatavegamin version:
Here's what they say:
1. They never rebuffed MSFT. They were always up for a chat.
2. $31 significantly undervalued the company and its assets.
3. $31 was actually $28 based upon the changes in MSFT stock value over the course of the nego.
4. MSFT really only wanted the search business, not the whole company. At least at the end of the nego.
5. MSFT unresponsive to info requests.
6. MSFT made a lot of threats.
7. The Search deal sucked. It made Yahoo's financial future dependent on the sales effort and interest of MSFT.
8. Google deal nonexclusive and good. 4 year term versus 10 for MSFT. $250-$450MM incremental cash in year one.
Most interesting chart to me is Yahoo's set of assets -- while Yahoo is a bit down of late, they are certainly not "out."
Thanks for reading, and don't forget to write.
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