Microsoft wants to finance Yahoo’s takeover to the tune of $1Bn

Microsoft wants to finance Yahoo’s takeover to the tune of $1Bn

Yahoo Inc.’s proposed sale has been a long, drawn out affair, but fresh funds from Microsoft may help to accelerate things.

According to a report in Re/Code, Microsoft executives are said to be meeting with a number of private equity firms to discuss a possible takeover of the ailing former Internet giant. Re/Code’s Kara Swisher says Microsoft is willing to cough up as much as a billion dollars to help finance any deal.

Swisher adds that many potential buyers don’t believe Yahoo is all that serious about the sale, as they think CEO Marissa Mayer still believes she can turn around the struggling company.

However, she may not have much time left to do so, as Swisher’s report came out just hours after major news outlets reported that the activist investor Starboard Value LP has nominated new directors to Yahoo’s board in an effort to shake things up and potentially even oust Mayer. Starboard, which has been pushing for changes at Yahoo since 2014 and owns about 1.7 percent of the company, said it would nominate nine candidates for the board, Reuters reported.

Yahoo said in a statement it will review Starboard’s nominees and respond in due course.

However, Starboard’s bid may be overtaken by Microsoft’s renewed interest. Leading negotiations on behalf of the Redmond giant is Peggy Johnson, who has handled some of Microsoft’s biggest acquisitions since joining the firm in August 2014. Re/Code says that any deal with Microsoft would likely ensure Yahoo remains a strong brand, with improved partnership deals.

Yahoo’s current market cap rounds out at around $32.5 billion, but the vast majority of that value is tied to its share in Alibaba Group Holdings Ltd., the Chinese e-commerce firm that’s likely to be spun off ahead of any deal. When that happens, Yahoo’s market cap falls to somewhere between $6 billion and $8 billion, and Microsoft would fund the takeover to the tune of $1 billion.

RELATED:  What you missed in Cloud: The blockchain rises

Microsoft previously showed an interest in acquiring Yahoo way back in 2008, when it made an unsolicited bid of around $44.6 billion.

Photo Credit: Teymur Visuals via Compfight cc

Mike Wheatley

Mike Wheatley is a senior staff writer at SiliconANGLE. He loves to write about Big Data and the Internet of Things, and explore how these technologies are evolving and helping businesses to become more agile.

Before joining SiliconANGLE, Mike was an editor at Argophilia Travel News, an occassional contributer to The Epoch Times, and has also dabbled in SEO and social media marketing. He usually bases himself in Bangkok, Thailand, though he can often be found roaming through the jungles or chilling on a beach.

Got a news story or tip? Email Mike@SiliconANGLE.com.

SIGN UP FOR THE SiliconANGLE NEWSLETTER!

Join our mailing list to receive the latest news and updates from our team.

SIGN UP FOR THE SiliconANGLE NEWSLETTER!

Join our mailing list to receive the latest news and updates from our team.

Submit a Comment

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Share This

Share This

Share this post with your friends!