There is now a strong indication that Yahoo will remain independent and hopefully with a Web 2.0 logo. Their Google search outsourcing deal should have been closed back in March in order to avoid the whole Carl Icahn scenario. Loved this part of their agreement:
The agreement also requires Yahoo! to pay a termination fee if the agreement is terminated as a result of a change in control that occurs within 24 months. The termination fee is $250 million, subject to reduction by 50 percent of revenues earned by Google under the agreement.
This is nothing in comparison to what Microsoft was willing to spend on the deal, but still money doesn’t grow in trees(even for Microsoft).
UPDATE: Just read additional clause that renders this post completely useless. This was probably put in place by the board, since they are getting tons of pressure from shareholders:
If the Services Agreement is terminated by either party within 24 months of the Effective Date as a result of a Change in Control of Yahoo! (other than a Change in Control triggered only by Microsoft …), Yahoo! is required to pay to Google the sum of $250,000,000
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