Yahoo’s Last Call for Serious Buyers

Reuters reports that private equity firms are coming out of the woodwork to take a look at Yahoo (NASDAQ:YHOO) ahead of the Friday deadline.  The potential buyers are being required to sign confidentiality agreements, which several are reluctant to sign because it would prevent them from forming partnerships with other interested parties. Currently five parties are holding out due to the requirement.  It is also reported that of those parties that have signed the agreement, certain revisions were negotiated in order to make the documents agreeable to the potential buyers.

Several sources familiar with the negotiations mention Silver Lake Partners, Providence Equity Partners, Bain Capital, Hellman & Friedman and Blackstone (NYSE:BX) as the firms who have not yet signed the non-disclosure documents.  It is speculated that these firms are interested in buying Yahoo (NASDAQ:YHOO) alongside Asian companies Alibaba and Softbank.   Reuters also mentions KKR (NYSE:KKR), TPG Capital and Carlyle Group as other interested parties, although there is no confirmed report of whether they have signed the required confidentiality paperwork.  Alibaba, Microsoft (NASDAQ:MSFT), and Google (NASDAQ:GOOG) are also big players who are taking part in purchase discussions.

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In regards to possible buyout structures, Reuters quotes an unidentified source as saying, “Everybody has a different approach to it, some involving banks, others not involving banks … but most of the private equity firms are not going to team up with other private equity firms as part of a club deal.”  Whatever the makeup of the final deal may be, it looks as if discussions are starting to gain steam with the signing of the non-disclosure documentation.

Here’s how Yahoo is trading in today’s action:

  • Yahoo! Inc. (NASDAQ:YHOO): The shares recently traded at $15.08, down $0.4, or 2.58%. Its market capitalization is $18.99 billion. They have traded in a 52-week range of $11.09 to $18.84. Volume today was 27,304,905 shares versus a 3-month average volume of 35,818,800 shares. The company’s trailing P/E is 18.35, while trailing earnings are $0.82 per share. About the company: Yahoo! Inc. is a global Internet media company that offers an online guide to Web navigation, aggregated information content, communication services, and commerce. The Company’s site includes a hierarchical, subject-based directory of Web sites, which enables users to locate and access information and services through hypertext links included in the directory. Get the most recent company news and stock data here >>
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