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 Send to email | Google, Yahoo Ready To Bail On Pact When Ballmer Shows Up (GOOG, YHOO) in NWSTWXYHOOMSFT |  By Silicon
el 13-Jun-2008 |
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 The SEC filing for the Google-Yahoo search deal has one interesting tidbit: An escape clause designed specifically with Microsoft, Time Warner, or News Corp in mind.
Either Yahoo or Google can spike the deal if there's a 'change in control' of the other company. Broad generic definition: Someone else controls 50% or more of its voting securities. But the language is tweaked to account for Microsoft (MSFT), Time Warner (TWX), or News Corp. (NWS): If any of those buyers ends up with 35% of Yahoo, Google can walk away.
And Google is clearly thinking about the prospects of Microsoft coming back to pick at Yahoo's carcass: It's gone ahead and inserted even more specific language to address a possible Redmond raid. If Microsoft acquires more than 15% of the voting power, 5% of the total equity, or 1% of the company's annual revenues, it's considered a change in control.
The escape hatches theoretically apply to both parties, but obviously there's only one practical application here. And to reinforce that, there's this clause: If Yahoo is acquired, Google can receive up to $250 million as a kill fee. That certainly won't be enough to keep Ballmer at bay, though.
See Also:
Yahoo Cost Freeze (YHOO) Means Business Likely Weak--Microsoft Just Waiting To Buy Carcass?
Former Fed Regulator: Yahoo-Google Search Deal To Face "Serious Antitrust Scrutiny"
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| Former Fed Regulator: Google-Yahoo Deal A Tough Sell To Feds (MSFT, YHOO, GOOG) | | Stifel Nicolaus analyst Blair Levin has broken down the odds that Washington approves one of multiple tie-ups in play right now: Microsoft (MSFT) buys all of Yahoo (YHOO) ; Microsoft buys Yahoo search; Yahoo hands over some of search to Google (GOOG).
Blair's bio makes him worth listening to: He was chief of staff to former FCC chair Reed Hundt for a good stretch of the Clinton administr [..] Read complete article | | Published 19-May-2008 by Silicon in GOOGYHOOMSFT
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