Yahoo! today sent a letter to all of its stockholders focusing specifically on the companies recent advertising agreement with Google and the outcome of discussions with Microsoft. The letter begins:
Dear Fellow Stockholders:
We are writing to update you on the latest developments here at
Yahoo!, including our recently announced commercial agreement with
Google and the outcome of our discussions with Microsoft regarding a
potential transaction.On June 12, we announced a non-exclusive agreement with Google that we
expect will generate approximately $250 to $450 million in
incremental operating cash flow for Yahoo! in the first twelve months
following implementation. This cash flow will enhance our
profitability as well as help support achievement of our key
strategic objectives. Combined with continuing advances in our own
search capability, the agreement is an important step in our efforts
to capitalize on the high-growth online advertising opportunities
where we are best positioned to compete successfully and create more
value . . .
Read the rest of the letter here
