The proposal on the table
Microsoft’s February 2008 announcement offered $31 per Yahoo share in cash and stock, which Microsoft described as roughly $44.6 billion of equity value and a 62% premium to the previous close. A premium that large made the offer concrete, but it did not settle Yahoo’s prospects, the value of a combination, or the risks of integrating two major internet businesses.
The distance that remained
Microsoft later said it increased its proposal by about $5 billion, while Yahoo sought at least $37 per share; Microsoft then withdrew. Years-later transactions involving Yahoo’s operating assets covered a changed business and different assets, so they cannot be subtracted from the 2008 proposal to manufacture a precise loss.