PE bid for Yahoo complicated by Asia business interests

Silver Lake Partners is said to be among the parties that have contacted Yahoo, but it isn't clear what, if anything, has been proposed. However, some PE firms have indicated that they would only consider making an offer for the company if the Asian assets were sold, creating a smaller and simpler acquisition, The Wall Street Journal reported.

Yahoo's directors are said to have ruled out a spinoff of the Asian business into a separate company because the Securities and Exchange Commission would likely oppose such a move on the grounds that Alibaba's finances are largely undisclosed. The situation is further complicated by the potential tax consequences of a sale and disagreements with Alibaba over the value of the Yahoo's stake in the business.

According to analysts from B. Riley & Co. and Stifel, Nicolaus & Co., Yahoo's Alibaba and Japan holdings represent about one third of the company's $18 billion market value.

The sacking of Yahoo CEO Carol Bartz last week has led to questions about the company's strategy and whether it can survive as an independent entity. Sources told The Journal that directors have put a priority on evaluating selling all or part of the company, rather than on a CEO search.

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• Topics
• Technology
• North Asia
• Greater China
• North America
• Buyouts
• Silver Lake