Report: Microsoft earmarks $1.5 billion to keep Yahoo employees

Microsoft expects to spend upward of $1.5 billion to retain Yahoo employees, should it be successful in its unsolicited takeover attempt of the Internet search pioneer, according to a report in the Wall Street Journal.

Microsoft plans to set aside $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 .

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 $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 $113,636 per employee.

The folks at Tellme Networks apparently did much better when they were acquired by Microsoft , averaging approximately $300,000 per worker, according to a . Sure, Tellme's workforce was much smaller than Yahoo's at 330 folks, but the $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.

 

Join the discussion

Conversation powered by Livefyre

Don't Miss
Hot Products
Trending on CNET

HOT ON CNET

Delete your photos by mistake?

Whether you've deleted everything on your memory card or there's been a data corruption, here's a way to recover those photos.