Bids for Stakes in Yahoo! Coming from Multiple Sources

yahooPrivate equity firm Silver Lake along with a group of investors have apparently put in a bid for a 10 to 15 percent stake in Yahoo (NASDAQ: YHOO).  The stake would take the form of convertible preferred securities in the company.  The bid is said to be worth as much as $3 billion dollars.

This means that Silver Lake values the company just 6% over its current share price at approximately $16.60 per share.   The bid is said to be less than one made by TPG Capital.

There are also reports that both KKR (NYSE: KKR) and Blackstone Group LP (NYSE:BX) are interested in purchasing a stake in Yahoo! as well.  One report has the bid in the neighborhood of $20/share.

Alibaba, of which Yahoo! owns a 40% stake in, has stated previously that it was interested in buying all of Yahoo, in essence repurchasing a portion of itself as well as absorbing the rest of the U.S. Internet mainstay but has balked due to the logistics of financing a deal that large.  The latest report on Wednesday advanced their strategy to include the aforementioned Blackstone Group who was working with Bain Capital LLC as well as Softbank Corp from Japan.

The total bid package may be valued at more than $20/share.  Yahoo’s board met on Wednesday to consider the bids from Silver Lake and TPG Capital.

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Tom Luongo

About Tom Luongo

Tom Luongo is a professional chemist and self-taught economist who has been following and trading stocks for nearly 12 years. He has no formal ties to the financial industry and considers that an asset in his analysis of the interplay between monetary policy and capital markets.

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