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Exposure of Microsoft interior mail abandons buying Yahoo real reason

August 10, 2008

We offer to Yahoo management layer at that time, bilateral and best can be in materiality agreement was reached before the bottom this year in April, can get superintendency sectional approval before the end of the year so. But arrived by April, both sides still fails to be obtained on Yahoo price consistent, we do not value together with the market outstanding achievement of Yahoo, because this decision recalls,buy Yahoo to want to make an appointment with.

In view of Yahoo ” abandon ” oneself and began with Gu Ge new ” love ” , microsoft must appear personally convince employee, actually ” lone ” the time is good also.

According to foreign media coverage, microsoft Windows and Kevin of president of Windows Live branch - Johnson is in in a mail of employee the real reason that showed Microsoft to abandon buying Yahoo, the reachs possibly to trading rate of progress planned speed in saying Microsoft is in those who buy Yahoo to trade takes seriously very much.

“In talk of the Paluoatuo March 10, we emphasized the importance that came to an agreement before the bottom in April to Yahoo management layer, such ability increase in 2008 nature finish inside year amalgamative trading possibility. ” Johnson says in the letter, “Before failing to be by April as a result of us, come to an agreement, also be the concern that stems from states of pair of Yahoo business operation at the same time, our vote calls in buy want to make an appointment with, turn and explore the plan of other possibility. Turn and explore the plan of other possibility..

Johnson says, exit buy after trading, microsoft tries the collaboration of other possibility with Yahoo again, johnson explained Microsoft and Yahoo are reached trade more advantageous to Yahoo partner reason.

　　 It is the entire content of mail of abdicate agreement writing below:

Sender: Kevin - Johnson

Send time: On June 13, on Friday, 2: 20 PM

Theme: With the newest progress that Yahoo talks

The Microsoft before this was stopped with the negotiation between Yahoo, and Yahoo reached cooperative agreement with Gu Ge again, I want to share my a few views with everybody.

Be in like me mail is medium on May 18 (in the accessory that specific content is sealing mail originally) what point out in that way, with buy Yahoo assets appearance completely to compare, we still have better replacement scheme. We already made strategic transition plan before this, will enlarge dimensions of Microsoft Internet business energetically henceforth namely.

Make us simple review Microsoft Yahoo to buy the whole process of the case. This year on Feburary 1, we put forward to buy a request to Yahoo, press Microsoft that day share price, the offer that our half cash increases half share is 31 dollars every, relatively Yahoo at that time price of share price excessive 62% . We raise very high quoted price at the beginning, the purpose is to can come to an agreement with the other side as soon as possible. The time that both sides comes to an agreement is earlier, the time that gets superintendency a branch approving also can shift to an earlier date accordingly.

This year on March 10, we and Yahoo are held in the palm in A of the name of a river in Shaanxi and Henan provinces of American California handkerchief (Palo Alto) held a talk. We offer to Yahoo management layer at that time, bilateral and best can be in materiality agreement was reached before the bottom this year in April, can approve in what got superintendency a branch before the end of the year 2008 so. But when arriving by April, both sides still fails to be obtained on Yahoo price consistent, we do not value together with the market outstanding achievement of Yahoo, accordingly we decide to recall buy Yahoo to want to make an appointment with, hope to pass other form and Yahoo collaboration.

Inside the number week that just goes, we cost a large number of time and Yahoo to spread out a talk, buy Yahoo in order to discuss to search the possibility of business. What point out in this need is, we buy what Yahoo searchs business to offerred to basically include the following 3 respects content:

1) Microsoft plans Xiang Yahu to invest 8 billion dollar, add up to every 35 dollars;

2) Microsoft will pay 1 billion dollar to buy Yahoo to search asset, the operation right that acquires Yahoo to search business next and technical development counterpoise, return relevant data return Yahoo, use in order to offer Yahoo in business of its network ad;

3) Microsoft will reach long-term partner to concern with Yahoo, at the appointed time the gain level that Microsoft makes Yahoo is searched rises somewhat, include by a definite date 3 years among them assure gold, in order to make sure the Panama that this company uses prep above of level of Yahoo search gain currently pays cost search system.

If both sides can have afore-mentioned collaboration, will constitute bigger market pressure to Gu Ge undoubtedly, offer more alternative to network ad business, publisher and consumer at the same time. Through (buy Yahoo to search only) this kind of means, not only can implement corresponding strategy quickly, and be helpful for simplifying the integrated circuit of bilateral business. In addition, pass afore-mentioned collaboration, the collaboration that still will make Microsoft and Yahoo suggest to be stabilized for a long time in Internet business domain concerns.

We think, afore-mentioned new proposals are Microsoft Yahoo and its partner created enormous value, incorporate is in the following 3 respects:

1) pays the new-style program of cash to Yahoo partner. Through Microsoft afore-mentioned new offer, microsoft pays 9 billion dollar Xiang Yahu, yahoo can return this share capital as accrual return partner.

2) raises the gain level of Yahoo. Pass afore-mentioned offerring, income of Yahoo year operation prep above current level. Executive head is entered one year in afore-mentioned plans in, hopeful of Yahoo operation income grows one times, be in its raise 1 billion dollar on foundation of level of current operation income.

3) searchs business to have market competition ability more. After Microsoft and Yahoo search platform undertake conformity, will make actual strength of bilateral technical research and development rises considerably, can undertake cutting to developing personnel at the same time, raise corresponding market to sell capacity thereby.

Anyhow, we think to pass Microsoft afore-mentioned offerring, the total prices value that brings to Yahoo partner exceeded every 33 dollars.

But regretful is, yahoo chose another kind of way however. This company announced yesterday, already reached cooperative agreement with Gu Ge, this action will make Gu Ge acquires the share that pays cost search market 90% above, very adverse to the competition of search element market. Many industry experts point out, after Yahoo and cereal song reach cooperative agreement, will face lawsuit of one pile law and the problem such as superintendency orgnaization intervening investigation.

Although Yahoo chose the plan that cooperates with Gu Ge, we will continue to carry out Microsoft established strategy, with marching energetically Internet serves and domain of network ad business.

Since giving out that to seal mail on May 18, we had gained a large number of new headway. On the plenary meeting of Advance '08 technology that holds in Microsoft, we announced Live Search Cashback and Live Search Farecast two new products, with cogent the search experience that strengthens an user. We still announced on June 2 this year, already HP of manufacturer of as the biggest as the whole world PC reachs cooperative agreement, hold pen of Live Search tool in order to be in the place PC that HP sells past United States and Canadian market beforehand. This consultative general at formal in January 2009 go into effect.

The MGX year that is about to hold in the company sells congress to go up, and on the financial analyst plenary meeting that will hold in July on this year in the company, we will concern Microsoft market strategy to grandfather cloth message of newest evolutional more.

Establish the respect such as oneself network business, our asset and strategic plan to Microsoft, I still confident. To everybody work hard, I thanks again.

Kevin · makes an appointment with writing abdicate

Microsoft Windows reachs president of Windows Live branch

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Written by ITTech · Filed Under IT Magazine