Microsoft made an offer of $44.6bn for Yahoo! recently which Yahoo! rejected saying it â€œsubstantially undervaluesâ€ the company (personally I think it waaaaay overvalued Yahoo! and Microsoft caught a lucky break that the offer was spurned).
The New York Times is reporting today though that Microsoft are determined to follow through on this.
However, both the New York Times and News.com have published a story today that Yahoo! have offered golden parachute to all its remaining employees (it terminated around 1,000 of its 14,000 employees in the last week).
According to the News.com report, the package:
will kick into effect should that employee lose his job within two years after a new owner takes over, should she get terminated without cause, or if the employee decides it’s time to leave for “good reason.”
…The golden parachute also includes health and dental coverage for the length of employees’ severance awards, as well as reimbursement of outplacement services up to two years, or a maximum of $15,000, depending on job title
In any significant merger there are necessarily layoffs (particularly of people with similar job functions) – this seems like a cynical ploy on Yahoo!s part to up the price indirectly for Microsoft while grabbing some goodwill headlines at the same time.