Microsoft plans to set aside US$1.5 billion for employee retention at Yahoo, should it succeed in its unsolicited buyout bid for the Internet search pioneer, according to court documents in a shareholder lawsuit cited by the Wall Street Journal.
The documents include transcripts of a March 24 conference call hearing between attorneys for Yahoo and two Detroit-based pension funds. During the call, a Yahoo attorney noted Microsoft had informed the company that it "earmarked US$1.5 billion for employee retention at Yahoo," cites the Journal.
Yahoo's workforce stands at approximately 13,200, following layoffs of roughly 1,000 employees in early February. That translates into an average of US$113,636 per employee.
The folks at Tellme Networks apparently did much better when they were acquired by Microsoft, averaging approximately US$300,000 per worker, according to a report in the New York Times. Sure, Tellme's workforce was much smaller than Yahoo's at 330 folks, but the US$100 million that Microsoft reportedly paid went a lot further.
While Yahoo employees may, on average, get less per employee than Tellme folks, one silver lining is no further layoffs are anticipated at Yahoo in the near-term. The Journal, citing court transcripts, notes Yahoo's attorney said: "there are no more reductions in force planned for the future" at the Internet search pioneer.
This article was originally a blog post on CNET News.com.
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