The final offer Microsoft made to Yahoo! this week which the beleaguered Internet search company spurned again would have given it $9 billion in cash and $1 billion a year in revenue sharing.
Microsoft had offered $8 billion for a 16 percent stake in Yahoo! and $1 billion for its search business, Kevin Johnson, a key member of Microsoft’s negotiating team, said in a letter to company employees.
The botched deal, before Yahoo! signed an advertising agreement with Google on Thursday, also included revenue-sharing that would have given Yahoo! an additional operating income of $1 billion a year.
The latest proposal from Microsoft was an alternative to its original unsolicited offer Feb 1 for full acquisition of Yahoo!, valued at $44.6 billion then, and a revised offer May 3 for around $50 billion. Yahoo! declined rejected on both occasions, saying the offers undervalued the company.
