Yahoo! Reportedly Approves Term Sheet on Asian Assets

NEW YORK ( TheStreet) -- Yahoo!'s ( YHOO) board of directors has reportedly signed an initial term sheet to sell back its Asian assets, according to AllThingsD.

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) 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

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