Billions of profit promised to Yahoo by Icahn and Microsoft
2008-07-14 19:22:09 (GMT) (Caymanmama.com - Business News)Raleigh, North Carolina (CaymanMama.com) — The famous billionaire Carl Icahn, along with Microsoft Corp., have finalized a deal in order to include improved search advertising revenue grants to Yahoo Inc. The joint proposal was rejected but later the changes were made by the two partners, as reported by sources.
By going into a joint venture with Carl Icahn, Microsoft Corp. has to extend sweetened proposal terms in order to control the search business of Yahoo after withdrawing the offer proposed by Yahoo Inc. in May. Microsoft earlier proposed to purchase the whole company but the offer was later rejected.
The terms which have been improved now include around $2.3 billion in the assured annual income gained from the search advertising that was earned over the period of five years. The option was to extend the proposal for another five years, as reported by a source. Also, according to a report, the joint deal would have carried the minimum annual percentage payment of about $1.6 billion for five consecutive years.
The fact still remains unclear whether Microsoft put the revenue guarantee payment open or not. Yahoo rejected the deal on Saturday that would have promised Microsoft the search business it had and leaving behind Icahn, who is the owner of 5% of the Yahoo Inc, the charge of the remaining company.
The revised proposal also included that Microsoft repeated the idea of selling Yahoo its Asian assets. However, the advisers and the board felt that it was something that the company could have done independently.
Yahoo said in a statement that the proposal put up by Icahn and Microsoft carried risk and complexity on a large scale as compared to the advertisement partnership it signed with Google Inc. last month.
CaymanMama.com - Press Release Distribution Service
Comments
Articles
- Pakistani youth deprived of recreational facilities
- How to Identify a Brain Injury
- Bluetooth technology: Revolutionized
- Color card printing best for business promotion and personal use
- What is Depression?
- Brochure Templates made easy with PrintPelican.com
- Flyers as best marketing tool for business enterprise
- Who uses an RSS Feed?
- A guide to personal injury claims
- DVD versus HD/DVD
