Yahoo Eyes Year-End Stake Sale To PE Firm

Yahoo, with a market capitalization of around $19 billion, is aiming to offload a minority stake to a private equity firm by the end of 2011.

Yahoo, with a market capitalization of around $19 billion, is aiming to offload a minority stake to a private equity firm by the end of 2011, The Wall Street Journal reports. The group received offers for a 20 percent stake from three bidders, including private equity firm TPG Capital and a group consisting of Silver Lake Partners, Microsoft Corp. and others. The offers put a per-share value on Yahoo of between $16 and $18.

Buyout firm Thomas H. Lee Partners has also shown interest in acquiring Yahoo’s U.S. operations, comprising websites such as Yahoo Finance and Yahoo News and an Internet advertising business. The firm is expecting a leveraged buyout of Yahoo’s U.S. business, which could be worth $5 billion to $6 billion, adds Reuters. Another group of firms, including Blackstone Group, Bain Capital and Hellman & Friedman, are planning a partnership with China’s Alibaba Group and Japan’s Softbank Corp. for buying Yahoo’s stakes in Alibaba and Yahoo Japan.

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