Microsoft Straightens The Record

July 14th, 2008 at 12:00 am

microsoft ballmer

Microhoo stories usually come in two’s or sometimes three’s. The great hing about it is that they are volleying statements over the newswire.  As Yahoo released their statement regarding the rejection of another Microsoft-Icahn proposal , Microsoft comes right out to clarify them.

According to Microsoft, the latest proposal was not hostile nor unannounced.  It turns out that Microsoft CEO Steve Ballmer and Yahoo Chairman Roy Bostock did have a discussion about another proposal where Bostock said that Yahoo was willing to negotiate if Microsoft could propose some terms like, increased TAC (traffic acquisition cost).

According to Microsoft’s explanation , "After considering Yahoo!’s request and taking into account Yahoo!’s previous feedback about our prior search proposal, Microsoft determined late Friday to propose an enhanced search transaction. This proposal included significant revenue guarantees, higher TAC rates, an equity investment and an option for Yahoo! to extend the agreement over a 10-year period."

And they continue to clarify: "Microsoft’s proposal did not include changes to Yahoo!’s governance."