Silver Lake eyes a stake in Yahoo!

Silver Lake Partners, a private equity firm, is making a bid for Yahoo! reports the Wall Street Journal. The bid comes as the internet company’s executive board tries to consolidate following the firing of CEO Carol Bartz.

While the company claims that its primary focus is on stabilising its executive ranks and bolstering it online-ad business, there have been persistent reports that the board is looking to sell all or part of the company.

Silver Lake, which recently sold its stake in VOIP provider Skype to Microsoft for US$8.5-billion is one of a number of bidders that have approached Yahoo! about a possible deal. It was unclear, however what such a deal would entail. The company is believed to be just one of many looking to gain a stake in Yahoo!

According the Journal Yahoo! has yet to officially meet with any potential investors.

Microsoft, a consortium of investors led by former top News Corp. executive Peter Chernin, and the Alibaba Group have also reportedly expressed interest in Yahoo! or its assets.

Yahoo! owns 43 percent of Alibaba, China’s top online retailer, and the stake is considered to be among its prize assets.

Quoting people “familiar with the matter”, however, the Wall Street Journal stated that the Yahoo! board had signalled potential investors that it is under no pressure to make any quick decisions.

The board is, though, reported to have discussed the potential investors at one of its regularly scheduled meetings.

According to one of the newspaper’s sources, the board has placed priority on evaluating whether to sell all or part of the company, rather than on searching for a new CEO.

This is in line with Yahoo! board chairman Roy Bostock’s statement that “comprehensive strategic review” of the company was being carried out in the wake of Batz’s firing.

“We are committed to exploring and evaluating possibilities and opportunities that will put Yahoo! on a trajectory for growth and innovation and deliver value to shareholders,” Bostock said.

Since Bartz’s, firing Yahoo! is also reported to have been in talks with Aol and Microsoft in an attempt to fight Google’s internet dominance.

According to the Journal, ad executives who were pitched a new ad-buying system say that the three internet companies have devised a plan wherein they will sell advertising on each other’s sites.

Yahoo! co-founder Jerry Yang was replaced as chief executive by Bartz two and a half years ago after he rejected a US$47-billion takeover offer from US software giant Microsoft.

Bartz significantly cut costs at Yahoo! but was faulted by investors and analysts for failing to articulate a clear strategic vision for the company on the quickly shifting Internet landscape.

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