According to court documents that were made public yesterday from Yahoo! Inc. (NASDAQ:YHOO), the search engine company actually planned on turning down an outsourcing deal with Google the day before Microsoft made a bid to acquire Yahoo!Â The document was created during an internal meeting on January 30, the day before Microsoft Corporation (NASDAQ:MSFT) made their bid.Â
The court document stated, “We are focused on long-term value creation rather than short-term gains.”Â Another portion of the court document stated “Short-term analysis of the revenue potential of outsourcing monetization may not take into account the longer term impact on the competitive market if search becomes an effective monopoly.”
This position made by Yahoo! was brought to attention when two Michigan pension funds sued Yahoo! for their refusal of the Microsoft bid.
On April 7, Yahoo! announced that they are creating an advertising platform called AMP!, which allows Yahoo! advertising partners to buy ad space on Yahoo! properties.Â Then on April 9, Yahoo! announced that they were interested in an advertising partnership with Google Inc. (NASDAQ:GOOG).Â
Yahoo! stated that they were disappointed with the regarding the Delaware Chancery Court’s ruling to possibly make the company’s confidential documents public.Â However, Yahoo! believes that it will not have much affect in the outcome of the case.
 Reuters: Yahoo opposed Google deal before Microsoft bid
Below is a timeline of occurence events in the Microsoft-Yahoo! saga:
June 2007: Former Yahoo! CEO, Terry Semel Resigns, Jerry Yang steps up
July 2007: Yang makes a 100 day plan to get Yahoo! off the ground again
February 1, 2008: Microsoft makes an unsolicited offer to Yahoo! for $44.6 billion
February 9, 2008: Yahoo! passes on Microsoft offer
February 11, 2008: Rumor is that Yahoo! may merge with AOL
February 12, 2008: Microsoft CEO, Steve Ballmer sends a letter to Yahoo! â??Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!â??s shareholders are provided with the opportunity to realize the value inherent in our proposal.â?
February 13, 2008: Layoff notices are given at Yahoo! Ryan Kuder Twitters the entire event
April 4, 2008: Rumors begin to appear that Microsoft is deciding to pull the offer
April 5, 2008: Microsoft sends a letter to Yahoo! stating that they may work out a separate deal with shareholders if a decision isnâ??t made.
April 7, 2008: Yahoo! Announces their AMP! advertising platform and stated that they want more money from Microsoft
April 9, 2008: Yahoo! states that they may be interested in an ad outsourcing deal with GoogleÂ
April 10, 2008: Rumors appear that News Corp. AOL, and Google all want to arrange deals with Yahoo!
April 12, 2008: Capital Research & Management invests $2 billion more in Yahoo! shares giving them ownership of $6 billion worth of the company
April 30, 2008: Rumor appears Microsoft increases the amount that theyâ??re willing to spend
May 4, 2008: Microsoft walks away from the negotiation table after YahoO! demands too much of a high price for Microsoft
May 4, 2008: Yahoo! responds by saying that through this experience, Yahoo! emerged as a stronger, more focused company
May 7, 2008: Yahoo! & Google become more serious about Google Ads appearing on Yahoo!
May 14, 2008: Major Yahoo! shareholder, Carl Icahn steps in and calls the Yahoo! Board irrational
May 20, 2008: Microsoft makes an offer to buy Yahoo!â??s Search Advertising Business for an undisclosed amount
May 23, 2008: Yahoo! Director, Edward Kozel resigns to â??spend more time with familyâ?
May 23, 2008: Yahoo! postpones shareholder meeting for the second time
May 28, 2008: Jerry Yang claims company isnâ??t under siege and Microsoft is no longer interested in buying out the whole company at All Things DÂ conference
May 30, 2008: FTC officially approves Icahnâ??s large purchases of Yahoo! stock.
June 2, 2008:Â Yahoo!Â court documents state thatÂ Yahoo!Â was planning toÂ turn down a deal with Google one day before the Microsoft bid.