Yahoo! Spends $79M on Financial Advice
Yahoo! has been making some major headlines over the last few weeks and it seems this week is no different. Today, reports emerged that the company spent nearly 80 million dollars on financial advisers last year.
Yahoo! revealed in an SEC filing that it paid financial advisers millions of dollars during Microsoft's unsolicited buyout offer. The company spent $79 million on outside advisers hired to advise it on the Microsoft takeover, the pursuit of "other strategic alternatives, including the Google agreement," the proxy fight and litigation costs.
Microsoft made several offers to Yahoo! last year, including one that valued the search company at $33 per share. Yahoo! rejected all of the offers including one for just the search division. According to RedOrbit, five separate stockholder lawsuits were filed against the company last year connected to the Microsoft bid.
The money spent on the Google agreement was also a bust. While the two companies claimed to have drawn up a deal designed to meet the satisfaction of antitrust regulators, both U.S. and EU antitrust bodies had issues with the agreement and the two companies walked away from the deal just hours after the Department of Justice decided to challenge the deal.
RedOrbit reports that Yahoo!’s main financial advisers were Goldman Sachs and Lehman Bros., whose investment banking business is now part of Barclays Capital Plc.
Yahoo!’s new CEO Carol Bartz shook things up at the company when she unveiled a new management structure late last week.