The Wall Street Journal said AOL and several private-equity firms are considering buying Yahoo. Two possible scenarios for the acquisition are suggested.
One is that China’s Alibaba Group buys back Yahoo’s 40% stake in the company, with some of Yahoo’s assets being sold to other media or technology firms. Private-equity firms would then attempt to get financing for the trimmed-down company.
The other is that AOL and Yahoo could be merged after Yahoo sells its Alibaba stake.
In 2008 Yahoo was approached by Microsoft, which made it an offer of US$47.5 billion. But Yahoo rejected it and Microsoft finally withdrew its last offer of US$33 a share. Now Yahoo’s market capitalization stands at about US$23.23 billion, less than half the original Microsoft offer.
In reporting these rumors CollegeStock suggests the obvious conclusion is that Alibaba wants to buy its way out of Yahoo.