Microsoft offered $1B for Yahoo search
InternetNews | at | by Mike
Microsoft offered Yahoo Inc $1 billion in cash to buy its search business in a deal that would have delivered $1 billion in additional annual operating income to Yahoo, a source familiar with Microsoft's thinking said on Friday.
In an alternative to a full acquisition, Microsoft would have taken control of Yahoo's search business, delivering the company better rates for s tied to its search results than Yahoo's current Panama advertising system, the source said.
Microsoft would have also paid $8 billion to take a 16 percent stake in Yahoo, which would have valued the company's stock at $35 a share, the source said.