Microsoft executives have reportedly been meeting with private equity firms thinking about bidding for Yahoo, telling them it might be willing to lend significant financing to their efforts, Recode reported, citing sources.
This week, sources said Yahoo began engaging with “strategic” bidders that include AT&T, Verizon and Comcast. PE and other investment firms will come next, the sources said, and those interested include Advent International, Vista Equity Partners, TPG, KKR and others.
Microsoft is reportedly interested in providing financing because it wants to ensure that if Yahoo is sold, whoever buys it will be a good partner going forward. Preserving its current status is important to Microsoft. Sources within the company said the company had no interest in making a more significant bid.
Market watchers put Yahoo’s market cap at USD 32.5 billion, includes the stakes in its Asian assets. After the spin-off of its Alibaba Group assets and taking out its shares of Yahoo Japan, valuation goes to USD 6-8 billion. Sources close to Yahoo’s board said the company wants USD 10 billion in a sale.
Microsoft declined to comment.
