There's an old saying involving the correlation between expenditures and profit, but apparently the same “money spending” axiom is also valid while in a struggle to avoid making a pile of cash. This is a lesson that Yahoo learned the hard way, as it coughed up no less than $79 million in order to not take Microsoft's billions in 2008. According to the Sunnyvale-based company's Form 10-K filing with the Securities and Exchange Commission the past week, it cost more than just a pretty dollar to stay out of Microsoft's hands.

In all fairness, not all of the $79 million went to the outside advisers who were helping Yahoo navigate the hostile Microsoft acquisition proposal. Yahoo also had to pay to advisers that helped fend off the proxy contest from shareholder Carl Icahn, who threatened to take over the company's board of directors in order to strike a deal with Microsoft. At the same time, expenditures were also related to the search and advertising agreement with Google, failed due to antitrust concerns which forced the Mountain View search giant to retire.

“For the year ended December 31, 2008, the increases in outsourced service provider expenses were primarily the result of incremental costs incurred in general and administrative expense of $79 million for 2008 for outside advisors related to Microsoft’s proposals to acquire all or a part of the Company, other strategic alternatives, including the Google agreement, the proxy contest, and related litigation defense costs,” reads an excerpt from the company's filing with the Securities and Exchange Commission on Friday.

Back in February 2008, Microsoft made an offer to acquire Yahoo at $31 per share, namely a total of $44.6 billion. The unsolicited takeover bid went as high as $33 per share, with Yahoo rejecting all offers on the table, including one involving just its search engine. In the end, Jerry Yang, then Yahoo CEO, got his wish and Microsoft completely retired its acquisition proposal.