Yahoo had complete layoff plan ready for MS takeover
updated 07:50 pm EDT, Mon June 2, 2008
Yahoo compensation plan
As a Delaware Judge unseals court documents regarding Yahoo, it came to light that the search engine and online advertising giant was attempting to form a comprehensive coverage plan for its employees in the event of a Microsoft takeover. CNN Money reports that the plan would have added anywhere between $462 million to $2.1 billion to the original $44.4 billion offered by the Windows maker, another sign that Yahoo was trying to "poison the well" to dissuade future takeover attempts.
Under the plan, Yahoo CEO Jerry Yang outlined that each of the company's 13,800 employees would be covered by 100-percent equity acceleration in the event of a takeover. The president of Compensia – the firm Yahoo hired to draft the severance plan – Tim Sparks noted of the move "That's nuts," according to Silicon Alley Insider.
On May 28th, Yang announced a complete merger is out of the question, as Microsoft is no longer interested. Instead, the companies are exploring a partnership of sorts, pending Yahoo's comprehension of Microsoft's plans.
