> As Recode reported last year, there was a clause in the Mozilla deal that would have the potential Yahoo acquirer pay $375 million per year through 2019 if Mozilla didn’t want to work with the buyer. This clause also allowed Mozilla to walk away at its sole discretion. We don’t know if Mozilla invoked this clause to terminate the agreement, but it seems likely.
Am I understanding this correctly? Mozilla will get paid $374M by invoking a clause at their own discretion. Sounds like a horrible deal to ratify. Was Yahoo that desperate?
In 2014, Yahoo looked to be in much better shape than it it is today. Sweeten the deal with a scenario that you don't think will happen and at the same time drop off a poison pill to defend against takeovers. Only problem was that Yahoo had to be better than Google at search. I'd say it was hubris, not desperation.
To be fair, it wasn't like there was a whole lot of incentive for Mozilla to use Yahoo! as the default, given as many people prefer Google. And especially with Yahoo! not doing so well, they would certainly not risk being associated with the likes of Verizon, a company that appears to be almost antithetical to Mozilla's mission.
Desperation, covered under a thick layer of the fake confidence derived from positive thinking at all cost.
If the mission is to ensure survival as an independent entity and not maximising takeover value, then betting large amounts of post-takeover money would be logical, the obvious impact of such a bet on takeover bids would be "out of scope".
Not so transparently awful, since it was contingent on Yahoo being acquired, back when that prospect introduced a lot of uncertainty into any deals with Yahoo.
Am I understanding this correctly? Mozilla will get paid $374M by invoking a clause at their own discretion. Sounds like a horrible deal to ratify. Was Yahoo that desperate?