Microsoft sets the record straight on the Yahoo search only deal that has been covered over and over again here at Furrier.org and everywhere else in the blogosphere.
Microsoft makes it clear that they didn’t drop the hammer on Yahoo with a take and leave it deal. Microsoft is closing in and wants this deal so bad.
Come on Steve punch it home.! As they say in football Microsoft has been in the ‘red zone’ on this deal for a long time. It’s ugly one penalty after another. This is getting so bad we might need instant replay. Steve: Just get it in the endzone.
Here is text from their press release
Specifically, on Thursday afternoon, July 10, Mr. Bostock called Steve Ballmer’s office to arrange a call. On that subsequent call, Mr. Bostock told Mr. 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.
After considering Yahoo!’s request and taking into account Yahoo!’s previous feedback about our prior search proposal, Microsoft determined late Friday to propose an enhanced search transaction. This proposal included significant revenue guarantees, higher TAC rates, an equity investment and an option for Yahoo! to extend the agreement over a 10-year period.
Microsoft’s proposal did not include changes to Yahoo!’s governance.
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. This discussion has been mischaracterized as a take it or leave it ultimatum, rather than a timetable in order to move forward to intensive negotiations. Yahoo! informed Microsoft on Saturday that it had rejected the proposal.