Now raising intellectual capital
Eighteen months ago, Yahoo walked away from Microsoft’s nearly $45 billion acquisition offer — a 60 percent premium to Yahoo’s then market value.
Fast forward to today and there is a zero premium being offered by Microsoft. And that’s after Yahoo also spurned $9 billion from Microsoft to buy just Yahoo’s search business. Still, investors had been hoping Microsoft might pay at least $1 billion in up-front cash to Yahoo.
No chance. Instead, Yahoo is receiving face-saving revenue guarantees for search advertising sold on Yahoo’s own sites for the first 18 months after the Microsoft deal takes effect.