Yahoo unhappy with bids for its US, Asia businesses
Yahoo is unhappy with the with the low premium being offered by private equity firms looking to invest in the company as well as the discounts proposed by prospective buyers of its Asian subsidiaries, which may stall any deal.
Earlier this month, Yahoo requested more information and better terms from bidders seeking less than 20% of the company, which wouldn't require a shareholder vote, The Wall Street Journal reported. This has prompted interested parties to rework their offers to target smaller minority stakes.
According to the newspaper, Silver Lake Partners is working with Microsoft and VC firm Andreessen Horowitz on an initial offer of around $16.60 per share for about 20% of Yahoo, while TPG Capital and Greylock Partners are willing to pay about a dollar more. A potential compromise would see bids revised to 10-15% of the company but at a higher per-share price.
Separately, it was reported earlier this month that The Blackstone Group and Bain Capital were nearing a bid for the whole of Yahoo at $20 per share, valuing the business at $25 billion. This proposal is said to minimize tax exposure. It could also see partnerships struck with Alibaba Group and Softbank Corp., Yahoo's joint venture partners in Asia.
Alibaba and Softbank have also made a joint offer to buy out the US internet firm's interests in the region. Alibaba wants to pay less than the $13 billion valuation assigned to Yahoo's 40% stake in the company on the grounds that tax savings would justify the discount. Yahoo has a 35% holding in Yahoo Japan, with Softbank owning the remainder. Softbank is also an investor in Alibaba.
It was reported last week that Alibaba has approached lenders about financing part of the transaction.
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