From Wired's Fred Vogelstein:
Of course, what everyone is discussing is that Yahoo! passed on the opportunity in 2002 to buy Google for $5B when their stock price was near its all-time low of $7. It was relatively soon after Terry Semel's hiring and would have required him to do a "merger of equals."
What I find more interesting is how this account differs from Terry's own account made to Ken Auletta and a soft-ball NY banking/media crowd from this past May where he claims Google wanted $3B and he offered $1B:Sphere: Related Content