Saying that Yahoo! shareholders are less than happy with the rejection of Microsoft's offer for Yahoo's online search branch, is an understatement. Yahoo preferred to make an ad deal with Google, and as a result Yahoo stock dropped by 7.5%, while Google stock rose.
Many of Yahoo's shareholders and certain analysts believe that joining with Microsoft would have been a much more lucrative decision. But Yahoo wanted to revive an offer made by Microsoft in the past to buy Yahoo in its entirety, an offer they had rejected. This time around Microsoft were no longer interested in such a deal and instead offered $1bn to take over the search business and another $8bn for 16% of Yahoo.
To give you a clearer image of the money being lost, Yahoo believes they can make up to $800 million a year with the current deal with Google, while analysts estimate that the Microsoft deal could have made up to $1 billion a year. That is $2oo,ooo the shareholders will not be seeing.
Furthermore, Reuters reported that there will probably be lawsuits from the shareholders that will eventually cost the company even more. Perhaps Yahoo execs know something the rest of us don't. Maybe in the long run it will work out for the best for them...
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