Microsoft Yahoo then Facebook? Rejected – Microsoft Did Bunker Down in Palo Alto July 2, 2008Posted by John in Technology.
Tags: microsoft, Rumor, Search, yahoo
Silicon Alley Insider has an interesting tidbit that confirms my story on June 19th that Microsoft was bunkered down in Palo Alto. It was that weekend that had Microsoft and Yahoo folks all over Palo Alto.
Henry Blodget writes on his blog today the details of what transpired on the weekend prior to June 19 as reported here on Furrier.org. Microsoft was in town to consummate the deal in Palo Alto as well as make a run at Facebook. It’s clear now they did make a run at Facebook but was rejected. Now Microsoft is trying to get support from the other players to stitch together a search plan. With Powerset now in the stable. Microsoft is moving to what looks like an orchestrated maneuver to get a search and online story fast.
He writes “Today’s Wall Street Journal, however, echoes reports that Yahoo left out at least one embarrassing detail from its “Microsoft timeline”–one that confirms that the excuse it used to reject the deal for months was nonsense:”
[On Saturday, May 17, in Palo Alto, Calif., two weeks after Microsoft walked], Yahoo CEO Jerry Yang, director Ron Burkle and chairman Mr. Bostock met with Microsoft’s Mr. Ballmer. Messrs. Bostock and Burkle told Mr. Ballmer they were prepared to sell Yahoo for $33 to $34 a share, the price range Microsoft had offered before talks broke down, according to people familiar with the meeting. That would have valued the deal at about $47 billion, or $6 billion less than Yahoo’s previous asking price of $37 a share
Microsoft was moving to get Yahoo search and had the messaging ready then was off to put the ‘checkbook’ in front of Facebook. They were pushed aside. Microsoft isn’t getting both of them but will mount a campaign to get equivalent “pieces” to compete against the ‘tide’ that is search 2.0 and social networks.