Reportedly talks are on again between Microsoft and Yahoo – This time around, Microsoft has offered $20 billion to buy just Yahoo’s Search business.
Here is the deal:
Under the terms of the proposed transaction, Microsoft would provide a $5 billion facility to the Miller and Levinsohn management team. The duo would raise an additional $5 billion from external investors.This cash would be used to buy convertible preference shares and warrants which would give it a holding in excess of 30% of Yahoo.The external investors would also have the right to appoint three of Yahoo’s 11 board directors. The talks with Yahoo involve Microsoft obtaining a 10-year operating agreement to manage the search business. It would also receive a two-year call option to buy the search business for $20 billion. That would leave Yahoo to run its own e-mail, messaging, and content services.
It is expected that the operating agreement would boost Yahoo’s income by as much as $2 billion per annum.
With Carl Icahn recently buying 6.8 million more Yahoo stock, it is obvious that there is something definitely happening behind the curtains. Keep watching this space for more updates.
Read more:
Techcrunch – Reports Of New Microsoft-Yahoo Search Deal Hard To Believe
VentureBeat – A new, elaborate $20 billion deal for Microsoft to buy Yahoo Search?
December 1st, 2008 at 3:10 am
Yaar! Do YOU really think MS is gonna “EAT” yahoo? I don’t thinks so, atleast not in near future.
December 1st, 2008 at 2:08 pm
Arey with Jerry Yang gone, it seems most likely. In the interest of shareholders of course.