Yahoo went public on August 4 with more details about terms of its search deal with Microsoft in its Securities and Exchange Commission (SEC) filing.
There are a couple of particulars I found interesting, especially when comparing Yahoo's 8-K filing to the Yahoo-Microsoft costs slide that Microsoft erroneously included in a Financial Analyst Meeting slide deck last week.
According to Yahoo's filing, if and when the Microsoft-Yahoo deal gains regulatory approval:
"Microsoft will hire not less than 400 Yahoo! employees (the “Transferred Employees”) and will offer the Transferred Employees market competitive compensation packages. In addition, Yahoo! and Microsoft will mutually agree on a retention plan to be paid for by Microsoft to assist in retaining the Transferred Employees and an additional 150 Yahoo! employees to be mutually agreed upon between Microsoft and Yahoo! to assist with providing the transition services."
I guess that explains the "retention pre/post close" costs of $90 million that Microsoft expects to spend as part of its new partnership.
Then there was the mention in that Microsoft costs slide of $150 million worth of "sign-on" costs. Looks like that might map to the $50 million annual payment Microsoft will make to Yahoo during the first three years of the agreement, which may be used to “partially cover transition and implementation costs not otherwise covered” under the deal.
When Microsoft announced plans at the start of this year to cut 5,000 of its own employees, CEO Steve Ballmer said the Online Services Division -- the part of the company responsible for search and online advertising -- would still be adding new hires in that unit. Now we know where 400 to 500 of those hires are going to come from....
Anyone else see anything noteworthy in Yahoo's new 8-K filing?