Yahoo Paid Millions To Defend Against Microsoft Bid
Posted on: Sunday, 1 March 2009, 07:40 CST
Yahoo Inc. paid $79 million to financial advisers last year to defend itself against an unsolicited buyout bid by Microsoft Corp., according to documents it filed with the U.S. Securities and Exchange Commission.
In its filing, Yahoo disclosed it had spent the money on outside advisers it hired to counsel the company on Microsoft's offer to purchase all or part of Yahoo and on the pursuit of “strategic alternatives, including the Google agreement“. Proxy fights and litigation charges were also included.
The company’s main financial advisers were Goldman Sachs and Lehman Bros., whose investment banking business is now part of Barclays Capital Plc.
Microsoft made its initial $44.6 billion buyout bid for Yahoo public last February. It later increased the offer to $47.5 billion, before walking away from the bargaining table in May after Yahoo rejected the bid.
In its SEC filing, Yahoo disclosed that five separate stockholder lawsuits were filed against the company last year connected to the Microsoft bid.
Yahoo sought an alternative search advertising partnership with Internet search giant Google Inc., and had also held discussions with Time Warner Inc.'s AOL unit, after the Microsoft bid fell through.
However, Google backed out of the arrangement after the partnership fell under regulatory scrutiny, and discussions with AOL have not progressed toward after the departure of Yahoo co-founder Jerry Yang, who stepped down as CEO.
In January, Yahoo replaced Yang with Carol Bartz, the former Autodesk well known for her direct manner and focused leadership. Bartz unveiled a significant management restructuring on Thursday.
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Image Caption: The numbers for shares of Yahoo are displayed on an electronic screen as Microsoft Corp. continued its takeover bid for Yahoo as seen at the NASDAQ on July 7, 2008 in New York City. Yahoo finished up $2.56 (11.99%) on the day, closing at $23.91. (UPI Photo/Monika Graff)
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Source: redOrbit Staff & Wire Reports
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