Cheaper selling itself to Microsoft
Last modified on Wednesday, 13 August 2008 02:23
The Yahoo Board not only wasted lots of shareholder money by not selling their souls to Microsoft, it appears that more than $36 million was wasted getting advice in how to tell Redmond to sling its hook.
Yahoo spent the cash on fees it has racked up for outside advice from bankers and lawyers, according to a filing with the Securities and Exchange Commission. Yahoo said it spent $36 million in the first half of 2008 on fees for outside advisers helping it handle Microsoft’s bid and Carl Icahn’s attempt to oust Yahoo’s board. Icahn later stopped the coup for a seat on the board.
Most of the cash went to Goldman Sachs, Lehman Brothers and Moelis & Company who were the financial firms that have been working with Yahoo as it considered Microsoft’s takeover offer and other strategic alternatives. Skadden Arps, Slate, Meagher & Flom who gave Yahoo such sterling legal advice were also understood to be laughing all the way to the bank.
The $36 million doesn’t include fees for July, when the company paid out shedloads to persuade its shareholders not to vote for Icahn’s rival Directors.