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Yahoo bid: Microsoft's Calendar of Discontent

More than five months after Microsoft launched its unsolicited bid to acquire Yahoo, the high-stakes corporate saga has delivered enough plot twists to fill a novel. And it's not over yet, with reports last week that Microsoft is trying, again, to strike a deal for Yahoo's search business.

So here's a little help for the lucky person who ends up writing the book on this -- and for everyone else who is simply trying to follow the story in the meantime. We've created an interactive calendar (in Google's online calendar service, appropriately) that lays out the key events and behind-the-scenes maneuvering in the Microsoft-Yahoo drama.

Some of this information trickled out along the way, but the picture became even more complete last week, when Yahoo provided its version of events as a means of defending its actions in the face of investor Carl Icahn's attempt to replace its board. The calendar also reflects some new details that emerged in print and online reports last week.

Calendar KeyClick the arrows at the upper left to browse through the months (the busiest period was February through April) and click on individual entries for details and links to sources. See extended entry, below calendar, for a raw timeline of events.

Jan. 31: Microsoft CEO Steve Ballmer launches bid to acquire Yahoo for $31 a share, or $44.6 billion.
Feb. 1: Yahoo says it will evaluate the proposal carefully.
Feb. 3: Google says Microsoft's offer raises "troubling questions."
Feb. 4: Microsoft says it will need to go into debt to pay for deal.
Feb. 4: Yahoo CEO Jerry Yang calls Microsoft bid one of many options.
Feb. 7: Yahoo's largest investor meets with Microsoft CEO Steve Ballmer, according to a New York Post report.
Feb. 11: Yahoo turns down initial offer, saying it undervalues the company.
Feb. 13: News Corp. emerges as potential Yahoo partner.
Feb. 19: Microsoft considering hostile takeover bid, the New York Times reports.
Feb. 21: Google co-founder Sergey Brin calls Microsoft bid "unnerving."
Feb. 26: Microsoft, Yahoo general counsels meet privately to discuss deal. (Source: Yahoo investor presentation.)
March 5: Yahoo delays deadline for board nominations, avoids forcing Microsoft's hand
March 10: Microsoft, Yahoo meet to discuss transaction. (Source: Yahoo investor presentation.)
March 13: Microsoft, Yahoo reported to be holding informal merger discussions.
March 19: New data show Google boosting its search lead, while Microsoft falls further behind.
March 28: Yahoo asks Microsoft for more information about regulatory challenges.
April 1: Microsoft, Yahoo meet to discuss issues related to integrating the companies. (Source: Yahoo investor presentation.)
April 4: Microsoft reported to be assessing its bid under theory that Yahoo may have lost value.
April 5: Microsoft gives Yahoo three-week deadline for negotiating a deal.
April 7: Yahoo says it's open to a deal, but not at Microsoft's proposed price.
April 9: Yahoo announces test of Google ad system; Microsoft raises antitrust concerns.
April 15: Microsoft, Yahoo hold secret meeting in Oregon. Yahoo declines to name acceptable price. (See Timeline: Microsoft's secret Yahoo meetings, and Yahoo investor presentation.)
April 18: Yahoo tells Microsoft that it will take at least $40 a share to do a deal.
April 26: Three-week deadline passes; Yahoo tells Microsoft in private letter that it's open to deal, but not at $31/share. (See timeline subsequently disclosed in Yahoo investor presentation.)
April 22: Yahoo, under pressure to show that it can at least match the value of Microsoft's bid, beats Wall Street's lowered earnings estimates, but the company doesn't adjust its revenue projections for the year. (PDF)
April 28: Report cites dissent inside Microsoft over merits of Yahoo acquisition.
April 29: Yang and Yahoo Chairman Roy Bostock indicate to Ballmer that a deal below $40 per share is possible.
April 30: At meeting with Microsoft in Bay Area, Yang names price of $38 per share.
May 2: Microsoft confirms that it will raise offer to $33 per share.
May 3: At climactic meeting in Seattle, Yang and Yahoo co-founder David Filo cite price of $37 a share. After they return to California, Ballmer calls and says Microsoft will withdraw offer. Microsoft announces decision that evening.
May 4: Yang defends Yahoo, saying it was open to deal at right price.
May 15: Billionaire investor Carl Icahn launches bid to unseat Yahoo board.
May 17: Yahoo tells Microsoft in a meeting that it would sell for $33 or $34 a share, according to a subsequent Wall Street Journal report. Microsoft says it's no longer interested in full acquisition, according to Yahoo.
May 18: Microsoft announces its interest in an "alternative transaction," later reported to be a deal for Yahoo's search business.
May 24: Ballmer and Yang discuss proposed search deal, reportedly while golfing in Montana.
May 29: Microsoft offers $1 billion for Yahoo search business, proposes additional $8 billion investment. Source: Yahoo filing.
June 8: Microsoft, Yahoo meet. Microsoft reiterates it is not interested in full acquisition, even at "prior price range," according to Yahoo.
June 12: Yahoo declines Microsoft search deal; announces ad partnership with Google.
June 18: Microsoft CEO Steve Ballmer calls Yahoo Chairman Roy Bostock to set up a new meeting about a new proposal "involving other partners," the Wall Street Journal later reports. Meeting is later canceled.
June 30: Yahoo makes its case to investors, saying "the record casts doubt on whether Microsoft was ever committed to a whole company acquisition."
July 1: U.S. Justice Department reportedly opens formal investigation into Google-Yahoo deal.
July 2: Microsoft reported to be talking with News Corp. and Time Warner about joining it in new Yahoo proposal.
July 3: Yahoo reported to be considering compromise deal with Icahn.
Aug. 1: Scheduled shareholder vote on Yahoo board.

Posted by at July 6, 2008 4:41 p.m.
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Comments
#147598

Posted by unregistered user at 7/6/08 9:55 p.m.

A local comedy group, Seattle Untimely, made a pretty funny video about this whole ordeal. Basically they go to the white board and try to figure out what Yahoo's worth. Funny Stuff:

http://www.twistedpine.org/seattleuntimely/index.php5?episodeNum=29

#147647

Posted by Carlos Hawes at 7/7/08 6:41 a.m.

Message to Microsoft:

Yahoo is just not really that into you...

So please quit calling and leaving messages,
sending flowers, and secret admirer cards.
Yahoo is going steady with Google now.

I think their last message for you was that they wouldn't date you if you were the last software vendor on earth!

#147675

Posted by unregistered user at 7/7/08 9:27 a.m.

MSFT

Jan 31, 2008 $32.60
July 7, 2008 $26.03

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