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Microsoft Gives Their Side of the Latest Yahoo Offer Story

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If Microsoft and Yahoo spent half as much time developing search technology as they did battling out the proposed acquisition in the court of public opinion, they might actually make the marketplace competitive.

But instead of working together in peace and harmony, they're engaged in posturing that's akin to a nasty celebrity divorce - or an episode of The Hills.

This time, Microsoft is feeling the need to correct what they say are inaccuracies of Yahoo's account of the latest search proposal. Primarily, they say that no change-up in Yahoo leadership was part of the latest offer.

Furthermore, they say that Roy Bostock called Steve Ballmer and requested a new offer. They quoted him as saying, “with substantial guarantees on the table and an increase in the TAC (traffic acquisition cost) rate, there are the pillars of a search only deal to be done.”

Because of that, Microsoft says they made an offer that "included significant revenue guarantees, higher TAC rates, an equity investment and an option for Yahoo! to extend the agreement over a 10-year period."

That offer was made on Friday, rejected on Saturday, the same day as Yahoo's latest statement. It took Microsoft two more days to release their statement. Sounds like they took some time to get their story together?

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