This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Alibaba Consortium Looks to Buy Yahoo: Report

NEW YORK ( TheStreet) - Alibaba, Softbank, The Blackstone Group (BX - Get Report)and Bain Capital are reportedly in advanced talks to make a bid on all of Yahoo! (YHOO - Get Report), according to Bloomberg, which cited unnamed sources.

The news continues a frenzied Wednesday as earlier reports indicated that Silver Lake and a consortium of investors are bidding for a minority stake in the company that would value shares at $16.60 each.

Yahoo!'s board, which is meeting Wednesday to discuss the offers it's received, would seem to have plenty of options to sift through. Bloomberg also said that TPG Capital, another private equity firm rumored to be participating in the Yahoo! sweepstakes, may have submitted a higher bid than Silver Lake.

The newest rumor of an Alibaba-led consortium should be no surprise. The company's founder Jack Ma has openly expressed his interest in buying back Yahoo's 40% stake in Alibaba, while Softbank has said it wants to purchase Yahoo!'s 35% stake in Yahoo Japan. Blackstone and Bain would participate in the bid to pick up Yahoo's remaining U.S. operations, the sources told Bloomberg.

The report also said Alibaba could partner with other private equity firms like Providence Equity Partners, or it could resist bidding entirely.

Yahoo! shares spiked nearly 5% higher in after-market trading to $16.48.

"A 20% private equity investment would complicate things even more," said Herman Leung an analyst with Susquehanna Financial Group about the rumors of a minority sale earlier in the day. He added, "It doesn't really solve what investors are hoping for the most, which is monetization of their Asian assets."

A full company sale may lead to a higher bid than the $16.60 that's been put on the table by Silver Lake, Bloomberg said.

Yahoo! shares have risen this week as deal rumors have surfaced at a maddening pace. Nevertheless, the company's shares have fallen over 5.5% year to date and are still roughly half of their value prior to the 2008 financial crisis.

Speculation about Yahoo!'s fate began in earnest when the company ousted Carol Bartz as CEO in early September and hired investment bankers to undertake a strategic review of its options.

-- Written by Antoine Gara in New York

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BX $41.41 0.00%
KKR $23.39 0.00%
MSFT $47.87 0.00%
YHOO $44.52 0.00%
AAPL $130.28 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs