The Curiously Fascinating Story of the Yahoo - Microsoft Search Deal The Yahoo - Microsoft search deal signed on July 29, 2009 was a long time in the making. In fact, it is a curious tale of wrangling and even a little drama. Read the tale of offers, counter-offers, threats, revolts, departures, and eventual dealmaking in this fascinating story of business. As seen on this page: http://focusedmarketer.com/yahoo-microsoft-search-deal-story

1. The Curiously FascinatingSTORYof theYahoo – MicrosoftSearch Deal Compiled by: Helen M. Overland

2. The Curiously Fascinating STORY of theYahoo - Microsoft Search Deal The story you are about to read is a matter of public record. No matter how fascinating or amusing this story seems to get at times, remember it is recorded in the annals of public history. Enjoy! FocusedMarketer.com August 3, 2009

3. The Curiously Fascinating STORY of theYahoo - Microsoft Search Deal We will begin our story in early 2008, skipping over a couple of years of on-again, mostly off-again corporate foreplay... Jan 31, 2008 Microsoft Proposes Acquisition of Yahoo! for $31 per Share http://www.microsoft.com/presspass/press/2008/feb08/02-01CorpNewsPR.mspx Feb. 11, 2008 Yahoo! Board of Directors Says Microsoft's Proposal Substantially Undervalues Yahoo! http://yhoo.client.shareholder.com/PRESS/ReleaseDetail.cfm?ReleaseID=293129 FocusedMarketer.com August 3, 2009 Photo courtesy AMagill Timeline

4. The Curiously Fascinating STORY of theYahoo - Microsoft Search Deal Feb. 11, 2008 Microsoft responds: “The Yahoo! response does not change our belief in the strategic and financial merits of our proposal. As we have said previously, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal.” http://www.microsoft.com/presspass/press/2008/feb08/02-11msft-response.mspx FocusedMarketer.com August 3, 2009 Photo courtesy huggybearjon Timeline

5. The Curiously Fascinating STORY of theYahoo - Microsoft Search Deal February 18 Rumors emerge of Yahoo being in talks with AOL http://news.bbc.co.uk/2/hi/business/7249277.stm March 11 News Corp says it will not fight Microsoft for Yahoo: "We're not going to get into a fight with Microsoft, which has a lot more money than us," Murdoch told investors at the annual Bear Stearns media conference. http://www.reuters.com/article/mergersNews/idUSWEN440320080310 FocusedMarketer.com August 3, 2009 Photo courtesy RogueSun Media Timeline

6. The Curiously Fascinating STORY of theYahoo - Microsoft Search Deal April 5, 2008 Microsoft Sends Letter to Yahoo! Board of Directors: “If we have not concluded an agreement within the next three weeks, we will be compelled to take our case directly to your shareholders, including the initiation of a proxy contest to elect an alternative slate of directors for the Yahoo! board.” http://www.microsoft.com/presspass/press/2008/apr08/04-05LetterPR.mspx FocusedMarketer.com August 3, 2009 Photo courtesy e-magic Timeline

7. The Curiously Fascinating STORY of theYahoo - Microsoft Search Deal Apr 07, 2008 Yahoo responds to Microsoft’s letter: “Our Board's view of your proposal has not changed. We continue to believe that your proposal is not in the best interests of Yahoo! and our stockholders.” http://yhoo.client.shareholder.com/PRESS/releasedetail.cfm?ReleaseID=303369 April 9, 2008 Yahoo announces they will start testing Google ads in Yahoo’s search results. http://yhoo.client.shareholder.com/press/releasedetail.cfm?ReleaseID=303999 FocusedMarketer.com August 3, 2009 Photo courtesy Ella's Dad Timeline

8. The Curiously Fascinating STORY of theYahoo - Microsoft Search Deal Apr 30, 2008 The Wall Street Journal reports that “Microsoft this week indicated a willingness to raise its bid to as much as $33 per Yahoo share,” http://online.wsj.com/article/SB120958473573757167.html?mod=technology_main_whats_news FocusedMarketer.com August 3, 2009 Photo courtesy si_si_ay Timeline

9. The Curiously Fascinating STORY of theYahoo - Microsoft Search Deal May 3, 2008 Microsoft Withdraws Proposal to Acquire Yahoo! in a letter to Jerry Yang http://www.microsoft.com/presspass/press/2008/may08/05-03letter.mspx May 3, 2008 Yahoo responds: “With the distraction of Microsoft's unsolicited proposal now behind us, we will be able to focus all of our energies on executing the most important transition in our history so that we can maximize our potential to the benefit of our shareholders, employees, partners and users.” http://yhoo.client.shareholder.com/press/releasedetail.cfm?ReleaseID=308131 FocusedMarketer.com August 3, 2009 Photo courtesy The Wolf Timeline

10. The Curiously Fascinating STORY of theYahoo - Microsoft Search Deal May 15, 2008 Billionaire investor Carl Icahn writes letter to Yahoo that "I believe that a combination between Microsoft and Yahoo is by far the most sensible path for both companies", and has purchased $1.3B in Yahoo stock http://www.usatoday.com/money/topstories/2008-05-15-729493711_x.htm May 15, 2008 Yahoo responds “Conversely, we do not believe it is in the best interests of Yahoo! stockholders to allow you and your hand-picked nominees to take control of Yahoo! for the express purpose of trying to force a sale of Yahoo! to a formerly interested buyer who has publicly stated that they have moved on.” http://yhoo.client.shareholder.com/press/releasedetail.cfm?ReleaseID=310754 FocusedMarketer.com August 3, 2009 Photo courtesy Tambako the Jaguar Timeline

11. The Curiously Fascinating STORY of theYahoo - Microsoft Search Deal May 18, 2008 Microsoft and Yahoo back in talks. http://www.microsoft.com/presspass/press/2008/may08/05-18statement.mspx May 21, 2008 T. Boone Pickens Picks Up 10 Million Yahoo Shares. There is some discussion that this is done in the hopes that Carl Icahn can work some kind of deal http://www.cbsnews.com/stories/2008/05/20/paidcontent/main4110359.shtml?source=search_story FocusedMarketer.com August 3, 2009 Photo courtesy hans s Timeline

12. The Curiously Fascinating STORY of theYahoo - Microsoft Search Deal June 2, 2008 Carl Icahn cleared to invest another $1.5bn in Yahoo http://www.guardian.co.uk/media/2008/jun/02/yahoo.mediabusiness June 3, 2009 Lawsuit filed against Yahoo for handling of Microsoft bid http://www.businessweek.com/the_thread/techbeat/archives/2008/06/judge_unseals_y.html?chan=top+news_top+news+index_technology June 3, 2008 Carl Icahn is reported to be seeking ousting of Jerry Yang as Yahoo CEO http://news.cnet.com/8301-10784_3-9958744-7.html FocusedMarketer.com August 3, 2009 Photo courtesy Tambako the Jaguar Timeline

13. The Curiously Fascinating STORY of theYahoo - Microsoft Search Deal June 12, 2008 Yahoo and Google announce agreement for Yahoo to display Google ads. http://yhoo.client.shareholder.com/press/releasedetail.cfm?ReleaseID=316450 http://www.google.com/yahoogooglefacts/ June 12, 2008 Microsoft responds “As stated on May 3rd and reiterated on May 18th Microsoft was not interested in rebidding for all of Yahoo!. Our alternative transaction remains available for discussion.” http://www.microsoft.com/presspass/press/2008/jun08/06-12statement.mspx FocusedMarketer.com August 3, 2009 Photo courtesy e-magic Timeline

14. The Curiously Fascinating STORY of theYahoo - Microsoft Search Deal Jul 7, 2008 Microsoft and Carl Icahn appear to be in discussions about a deal with Yahoo. http://www.microsoft.com/presspass/press/2008/jul08/07-07statement.mspx Jul 7, 2008 Yahoo responds: “If Microsoft and Mr. Ballmer really want to purchase Yahoo!, we again invite them to make a proposal immediately. And if Mr. Icahn has an actual plan for Yahoo! beyond hoping that Microsoft might actually consummate a deal which they have repeatedly walked away from, we would be very interested in hearing it.” http://yhoo.client.shareholder.com/press/releasedetail.cfm?ReleaseID=319847 FocusedMarketer.com August 3, 2009 Photo courtesy Tambako the Jaguar Timeline

15. The Curiously Fascinating STORY of theYahoo - Microsoft Search Deal Jul 12, 2008 Yahoo rejects a joint Microsoft/Icahn offer http://yhoo.client.shareholder.com/press/releasedetail.cfm?ReleaseID=321697 July 14, 2008 Carl Icahn responds “I have yet to see a company distort, omit and twist events and facts in the manner that Yahoo! has done” http://www.nytimes.com/2008/07/14/business/worldbusiness/14iht-yahoo.4.14486514.html July 14, 2008 Microsoft responds “the enhanced proposal… we submitted late Friday was submitted at the request of Yahoo! Chairman Roy Bostock” http://www.microsoft.com/Presspass/press/2008/jul08/07-14statement.mspx FocusedMarketer.com August 3, 2009 Timeline

16. The Curiously Fascinating STORY of theYahoo - Microsoft Search Deal July 29, 2008 T. Boone Pickens sells his Yahoo shares at a loss. Is quoted as saying “I think that Yahoo management was pathetic” (editors note: don’t worry, he’s still quite well off) http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/07/28/BUS6120SSI.DTL October 14, 2008 Google & Yahoo in talks with DOJ to avoid possible antitrust challenge http://online.wsj.com/article/SB122393254528030085.html?mod=testMod Oct 20, 2008 Yahoo is reported to be planning cuts, possibly over 1000 people http://online.wsj.com/article/SB122445684738348449.html FocusedMarketer.com August 3, 2009 Timeline

17. The Curiously Fascinating STORY of theYahoo - Microsoft Search Deal Nov 5, 2008 Citing regulator concerns, Google terminates its ad agreement with Yahoo http://yhoo.client.shareholder.com/PRESS/releasedetail.cfm?ReleaseID=345734 http://googlepublicpolicy.blogspot.com/2008/11/ending-our-agreement-with-yahoo.html FocusedMarketer.com August 3, 2009 Photo courtesy Mikelo Timeline

18. The Curiously Fascinating STORY of theYahoo - Microsoft Search Deal Nov 6, 2008 Yahoo CEO Jerry Yang quoted as saying “To this day the best thing for Microsoft to do is buy Yahoo.” http://searchengineland.com/yahoo-invites-another-bid-from-microsoft-15383 FocusedMarketer.com August 3, 2009 Timeline

19. The Curiously Fascinating STORY of theYahoo - Microsoft Search Deal Nov 7, 2008 Microsoft to Jerry Yang: No. Well actually: “We are not interested in going back and re-looking at an acquisition. I don't know why they would be either, frankly” http://www.reuters.com/article/mergersNews/idUSSYD41512320081107 FocusedMarketer.com August 3, 2009 Timeline

20. The Curiously Fascinating STORY of theYahoo - Microsoft Search Deal Nov 17, 2008 Jerry Yang steps down as Yahoo CEO http://yhoo.client.shareholder.com/press/releasedetail.cfm?ReleaseID=348088 Nov 19, 2008 Microsoft “done with all acquisition discussions with Yahoo”, but still open to “search collaboration” http://blog.seattlepi.com/microsoft/archives/154844.asp FocusedMarketer.com August 3, 2009 Photo courtesy Yodel Anecdotal Timeline

21. The Curiously Fascinating STORY of theYahoo - Microsoft Search Deal Dec. 4, 2008 Microsoft appoints Dr. Qi Lu, former VP of Engineering for the Search and Advertising Technology Group at Yahoo!, as Microsoft president of Online Services Group http://www.microsoft.com/Presspass/press/2008/dec08/12-04CorpDec4PR.mspx FocusedMarketer.com August 3, 2009 Timeline

22. The Curiously Fascinating STORY of theYahoo - Microsoft Search Deal Jan 13, 2009 Carol Bartz becomes Yahoo’s new CEO http://yhoo.client.shareholder.com/PRESS/releasedetail.cfm?ReleaseID=359016 January 16, 2009 Microsoft and Yahoo Executives Meet. Again. http://www.nytimes.com/2009/01/17/technology/companies/17yahoo.html FocusedMarketer.com August 3, 2009 Photo courtesy Yodel Anecdotal Timeline

23. The Curiously Fascinating STORY of theYahoo - Microsoft Search Deal Apr 10, 2009 Still Talking. http://kara.allthingsd.com/20090410/yahoos-bartz-and-microsofts-ballmer-finally-talking-about-search-and-advertising-partnership/ May 28, 2009 Microsoft search engine Bing launches http://www.microsoft.com/presspass/press/2009/may09/05-28NewSearchPR.mspx FocusedMarketer.com August 3, 2009 Photo courtesy bpedro Timeline

24. The Curiously Fascinating STORY of theYahoo - Microsoft Search Deal Jul 23, 2009 Yahoo Board meets about possible Microsoft deal http://blogs.barrons.com/techtraderdaily/2009/07/23/wsj-yahoo-board-meeting-today-about-microsoft-deal/ Then, Finally... FocusedMarketer.com August 3, 2009 Timeline

25. The Curiously Fascinating STORY of theYahoo - Microsoft Search Deal Jul 29, 2009 Yahoo! and Microsoft announce an agreement. http://www.choicevalueinnovation.com/thedeal/announcement/Default.aspx FocusedMarketer.com August 3, 2009 Photo courtesy Yodel Anecdotal Timeline

26. The Curiously Fascinating STORY of theYahoo - Microsoft Search Deal A Few Interesting Highlights of the Deal The Yahoo Search engine goes away (as in “bye-bye”) The Microsoft Bing search engine will be used on Yahoo Microsoft gets access to Yahoo’s search technology for 10 years Microsoft will pay traffic acquisition costs to Yahoo! at an initial rate of 88% of search revenue generated on Yahoo!'s sites for the first 5 years The deal affects only search engines, not email or news, for example FocusedMarketer.com August 3, 2009

27. The Curiously Fascinating STORY of theYahoo - Microsoft Search Deal That’s it, thanks for reading! Compiled by: Helen M. Overland(a.k.a. semlady) FocusedMarketer.com Follow me! twitter.com/semlady FocusedMarketer.com August 3, 2009