Consortium plans $25bn Yahoo bid
01 December 2011
Private equity firms Blackstone Group and Bain Capital are reportedly preparing a $25bn bid with Asian partners for Yahoo
, dwarfing Microsoft’s
$20bn offer earlier in the week.
claimed that the consortium bid includes China’s Alibaba Group, which wants to buy back a 40% stake owned by Yahoo, and Japan’s Softbank. Blackstone and Bain have teamed up previously with acquisitions of the Weather Channel alongside NBCUniversal and a $6bn buyout of US retailer Michaels Stores in 2006.
Yahoo’s value rose as shares closed at $16.72, a $1.01 increase, on the New York Stock Exchange yesterday. If the deal goes ahead at more than $20 per share it could potentially be the largest buyout in recent years.
The current bid puts pressure on both Yahoo and Microsoft. Yahoo intended to sell a minority 20% stake in the business, while Microsoft needs to own a sizeable share to facilitate its money-losing search deal with Yahoo.
Yahoo is experiencing tough times currently as it struggles to compete with internet giants Google
. The company is also without a chief executive following Carol Bartz
dismissal in September.
Dean Kelly, London