EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

11.30.08

Microsoft Hijacked Yahoo! from the Inside (Updated)

Posted in Google, Microsoft, Patents at 12:58 pm by Dr. Roy Schestowitz

“You don’t need to buy the company, just destroy them and then take their business.”

Duncan ‘Dragons Den’ Bannatyne

In this latest chapter, there are negotiations for the acquisition of Yahoo’s search business. A reader of ours once again points out that a patent which acts as anti-Google kryptonite might be the motive. The patent can be found here and some analysis here: “Google’s SEC filings mention a “fully-paid, perpetual license,” but they omit the word non-revocable. Patent license terms often include non-revocable in addition to perpetual. Perpetual seems to indicate non-revocability but it really does not. It is unreasonable to expect Google’s high-powered lawyers to miss the word non-revocable, so Google’s license to the ’361 patent is revocable.”

For background about this Yahoo! saga, see our previous coverage and analysis, which includes:

There is a lot more in the posts above (including evidence of control being seized from the inside), so that won’t be repeated here.

It was probably predictable. This type of deal was coming following a lot of agitation from Microsoft and ‘injection’ of its own people into Yahoo. Here is another lost boss for Yahoo (from Friday).

Coppel will stay for the handover to his replacement and leave the company in the first quarter of 2009.

Sue Decker, president of Yahoo! Inc, said, “The appointment of Rich Riley represents the next phase in the evolution of our European and Canadian businesses, enabling us to build on the great foundations laid by Toby Coppel.

Microsoft must be aiming at overthrowing the opposition from Yahoo and taking control from the inside rather than from the outside. Yang jumped in after Terry Semel had shown signs of weakness.

Speculations grew just before the American holiday began, particularly because Icahn, whom Microsoft communicates with and probably uses in what’s known as a “proxy battle”, made his move.

Talks with Microsoft are rumoured to be still going on – possibly just for its search business. And presumably Steve Ballmer is offering a lot less than $33 a share.

Yang’s supposed preferred response, an ad deal with Google, has also fallen through.

Here is MarketWatch’s report about it.

According to a filing with the Securities and Exchange Commission, Icahn purchased roughly 6.8 million shares in Yahoo…

Lastly, from the Los Angeles Times: Yahoo stock rallies after Carl Icahn increases stake

The company’s stock surged 93 cents, or nearly 9%, to $11.51 in the shortened trading session after Icahn, a Yahoo board member who has been pushing a strategy shift or a sale to Microsoft Corp., said he had bought about 6.8 million shares.

There are some other new sightings of Microsoft/Yahoo.

All in all, this has been a brutal and despicable display of power. Some of the moves involved should be illegal and considered white-collar crime.

Update: that original report is being challenged and even refuted now.

A report in the Sunday Times that Microsoft Inc is in talks with Yahoo Inc to buy the U.S. internet company’s online search business for $20 billion is “total fiction,” according to a key executive cited by an influential U.S. blog.

The Sunday Times, which did not cite its sources, said the proposal under discussion involves a complex transaction that would see the U.S. software giant support a new management team to take control of Yahoo.

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

7 Comments

  1. Needs Sunlight said,

    November 30, 2008 at 1:50 pm

    Gravatar

    Keep in mind that M$ is borrowing for the bids *and* that many of the prices don’t include cash, but stock papers instead. Count only the cash in the discussions, not funnymoney.

  2. Needs Sunlight said,

    November 30, 2008 at 1:51 pm

    Gravatar

    Keep in mind that M$ is borrowing for the bids *and* that many of the prices don’t include cash, but stock papers instead. Count only the cash in the discussions, not funnymoney. (That may be worth annotating in each of the quotes as well, when dollar values are mentioned.)

  3. Doug said,

    November 30, 2008 at 2:32 pm

    Gravatar

    Microsoft/Yahoo deal is ‘total fiction’ ..

    “Rumors of Microsoft buying all of Yahoo have popped up regularly since it abandoned its failed takeover bid, all of which have been untrue”

    “That’s not to say there will not be some search deal between Yahoo and Microsoft, which seems more than likely at some point.”

    So, it’s true and not true, at the same time ..

    http://kara.allthingsd.com/20081129/total-fiction-there-is-no-20-billion-microsoft-deal-to-buy-yahoo-search/

  4. Doug said,

    November 30, 2008 at 2:36 pm

    Gravatar

    Actually that quote is from one of the clients, as quoted to him ..

    “instead of buying a business, its much better to undercut that business put them out of business and then mop up their business anyway”

    http://snipurl.com/6yp35 25:40 ..

  5. Needs Sunlight said,

    November 30, 2008 at 3:30 pm

    Gravatar

    Keep in mind both that M$ is borrowing for the bids *and* that many of the prices don’t include cash, but stock papers instead. Count only the cash in the discussions, not funny-money. (The actually cash may be worth annotating in each of the quotes as well, when dollar values are mentioned.)

  6. Roy Schestowitz said,

    November 30, 2008 at 3:36 pm

    Gravatar

    That’s a cherry on the cake. Even without any slice of Yahoo they drive into a debt of $6bn the last time I checked the numberw. Even Apple is wealthier (counting by liquid assets).

  7. Roy Schestowitz said,

    November 30, 2008 at 4:13 pm

    Gravatar

    Doug,

    I reckon it’s inevitable. Carl and his two buddies don’t sit there on the Board of Directors for leisure. Carl does not even attend important meetings. He’s there to stuff the ballot, literally or metaphorically at times. He talks to Microsoft, and vice versa. Meanwhile, Microsoft execs are entering Yahoo! while resistors like Yang are pressured out. Put 2 and 2 together. :-)

What Else is New


  1. The End of Software Patents and PTAB's Role in Enforcing That End

    Software patents are fast becoming a dying breed and the appeal board (PTAB) of the USPTO accelerates this trend, irrespective of patent immunity attempts



  2. No, China Isn't Most Innovative, It's Just Granting a Lot of Low-Quality Patents

    Patent extremists are trying to make China look like a role model or a success story because China grants far too many patents, spurring an explosion in litigation



  3. Battistelli-Campinos Transition Will Be a Smooth One as the Administrative Council Remains the Same and the Boards Still Besieged

    A rather pessimistic (albeit likely realistic) expectation from tomorrow's meeting of the Administrative Council, which continues to show that no lessons were learned and no strategy will be altered to avoid doom (low-quality patents and stocks running out)



  4. Links 12/12/2017: New BlackArch ISO and Stable Kernels

    Links for the day



  5. German Media Helps Cover Up -- Not Cover -- the Latest EPO Scandal

    EPO-Handelsblatt attention diversion tricks may be effective as German media barely shows interest in one of the EPO's biggest scandals to date



  6. PTAB Haters Fail to Guard Bogus Patents, But They Still Try

    Three Affiliated Tribes probably won't enjoy sovereign immunity from PTAB, Dennis Crouch won't manage to slow down PTAB, and patent litigation will stagnate as bad patents perish before they even land in a lawsuit



  7. Team UPC's Tilmann Defends Rogue Vote at 1 AM in the Morning With Just 5% of Politicians (Those With Vested Interests) Attending

    Just when German democracy is being stolen by a legislative coup (in the dead of night when 95% of politicians are absent/asleep) there's someone 'courageous' enough to rear his ugly head and attempt to justify that coup



  8. The Mask Falls: Lobbyist David Kappos Now Composes Pieces for the Patent Trolls' Lobby (IAM)

    David Kappos, a former USPTO Director who is now lobbying for large corporations that derive revenue from patent extortion, is writing for IAM even if his views are significantly biased by his aggressive paymasters (just like IAM's)



  9. The EPO Protest Tomorrow Isn't Just About Judge Corcoran But About the EPO as a Whole

    PO staff is about to protest against the employer, pointing out that "Battistelli is still showing a total and utter lack of respect not only for his staff and their rights but also for the Administrative Council and for the Tribunal"



  10. Claim: Judge Corcoran to Be Put Under Benoît Battistelli's Control in DG1

    Benoît Battistelli, who openly disregards and refuses to obey judges (while intervening in trials and delivering 'royal decrees' whenever it suits him), may soon gain direct control over the judge he hates most



  11. The European Patent Organisation Refrains (For Nearly a Week) From Speaking About Battistelli's Abuses as Judged by ILO Tribunal

    The EPO's silence on the matter of Patrick Corcoran is deafening; to make matters worse, the EPO continues to pollute media and academia with money of stakeholders, with the sole intention of lobbying and misleading news coverage (clearly a disservice to these stakeholders)



  12. Carl Josefsson Lets Judge Patrick Corcoran Come Back to Work at the EPO

    After initial reluctance to obey/respect the rulings from the ILO (security staff declining access) there is official permission for Patrick Corcoran to enter and resume work (following 3 years of injustice against him)



  13. Bristows is Being Hammered With Negative Comments For Its Unitary Patent (UPC) Lies

    The Unified Patent Court (UPC) is practically dead in the UK and Ireland; Bristows, nevertheless, continues with its desperate spin



  14. Links 11/12/2017: Linux 4.15 RC3, Debian 8.10 and Debian 9.3

    Links for the day



  15. Judge Corcoran Turns to His Government for Help and EPO 'House Ban' is Finally Lifted

    Sources that are very reliable say that Patrick Corcoran is coming back to work, however it's now clear when and how long for



  16. Raw: Battistelli's Control/Domination Over the Boards of Appeal

    An old EPO document internally voicing concerns about the lack of independence at the Boards of Appeal



  17. Raw: Conflicts of Interest of EPO Vice-President

    An old EPO concern regarding structural collisions and mixed loyalties



  18. Microsoft-Connected Patent Trolls Are Increasingly Active and Microsoft is Selling 'Protection' (Azure Subscriptions)

    There are several indications that Microsoft-connected shells, which produce no products and are threatening a large number of companies, are inadvertently if not intentionally helping Microsoft sell "indemnification" ("Azure IP Advantage," which echoes the Microsoft/Novell strategy for collecting what they called "patent royalties" one decade ago)



  19. Yes, RPost is Definitely a Patent Troll and Its Software Patents Are at Risk Thanks to Alice

    The latest whitewashing (or reputation-laundering) pieces from Watchtroll, which tries to justify patent-trolling activities with software patents, typically in the Eastern District of Texas



  20. The Latest Scams in the Patent World

    Examples of 'dirty laundry' of the patent microcosm, which it understandably does not like covering (as it harms confidence in their services/advice)



  21. Patents Are Becoming a Welfare System for the Rich and Powerful

    A culture of litigation and more recently the patenting of broad industry standards may mean that multi-billion dollar corporations are cashing in without lifting a finger



  22. Unlike the Mobile Domain, When it Comes to Cars Patent Lawsuits Remain Rare

    An optimistic note regarding the relatively low-temperature legal landscape surrounding advanced automobiles, even though patents are being amassed on software in that domain



  23. The Federal Circuit Rules (Again) in Favour of Section 101/Alice, Koch-Funded CPIP Tries to Overturn Alice at the Supreme Court

    The US Supreme Court's decision on Alice continues to have a profoundly positive impact (except for trolls) and Koch-funded academics try hard to compel the US Supreme Court to reverse/override Alice (so far to no avail)



  24. Next Director of the USPTO Parrots Talking Points of Patent Extremists and Their Lobbyists

    The next USPTO boss (still subject to official confirmation) may be little more than a power grab by the litigation and patenting 'industry', which prioritises not science and technology but its own bottom line



  25. Raw: Three Years for 'Justice' (to be Disregarded by Benoît Battistelli) at ILO and Over a Decade at the EPO

    The delays associated with ‘justice’ at the EPO (usually neither justice nor compliance with rulings) have become so extraordinary that immunity should long ago have been stripped off and Battistelli et al been held accountable



  26. Raw: Scuttling of the General Advisory Committee and Battistelli Stacking the Deck to Have 'Yes Men' as Representatives

    How the EPO broke down resistance to Battistelli’s oppressive policies not only at the Council, disciplinary committees and auditory divisions but also staff representation (symptomatic of Battistelli’s notion of justice)



  27. The Patent Trial and Appeal Board Will Endure Supreme Court Test and Overcome the Tribal Immunity “Scam”

    The Patent Trial and Appeal Board (PTAB), based on the latest news, is still winning the argument and justifying its existence/importance



  28. Phones/Mobility (Trillion-Dollar Market) May Have Become Infested and Encumbered by Aggressive, Dying Companies

    The tough reality that new entrants/entrepreneurs are facing now that a few dying giants look to "monetise" their patents rather than create anything



  29. Links 9/12/2017: Mesa 17.3, Wine 3.0 RC1, New Debian Builds

    Links for the day



  30. Like the EPO, Taiwan/China (SIPO) Harm SMEs With a Policy of Patent Maximalism Which Fosters Litigation, Not Innovation

    A culture of patent maximalism breeds plenty of lawsuits in China (good for the legal ‘industry’), but small companies that are innovative lose focus and resources, just like in Europe where SMEs are discriminated against


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts