According to unidentified sources cited by AllThingsD, Yahoo!'s board has approved continuing the negotiations to sell back its 35% stake in Yahoo! Japan to Softbank, and to sell back the majority of its 40% stake in Alibaba Group. The agreement could take six to eight weeks to finalize, the sources said.
The deal values Yahoo's stake in both companies at $17 billion to $18 billion, the report said. The current market cap of Yahoo! is slightly over $20 billion.Yahoo! has been trying to unlock the value in these stakes, and divesting them as part of a cash-rich split appears to be the best option. Yahoo! shares are off 2.3% year-to-date. In addition, Yahoo!'s board still wants to keep the bids from private equity firms Silver Lake Partners and TPG Capital alive. Blackstone (BX - Get Report) has also been rumored to be interested in purchasing Yahoo!'s U.S. operations. Silver Lake reportedly has reportedly made an offer of $16.60 per share for a minority stake in Yahoo. Representatives from Yahoo!, Alibaba, Silver Lake, and TPG could not be immediately reached for comment. Shares of Yahoo! were higher after the report, up 1.25% to $16.20 in afternoon action.
Interested in more on Yahoo!? See TheStreet Ratings' report card for this stock. -- Written by Chris Ciaccia in New York >To follow the writer on Twitter, go to http://twitter.com/commodity_bull. >To submit a news tip, send an email to: firstname.lastname@example.org