Thursday, October 20, 2011

Report: Microsoft may make bid for Yahoo

Microsoft Corp. and private-equity firm Silver Lake Partners may be working up a proposal to buy Yahoo Inc., the Wall Street Journal reported Thursday.

The Journal said Microsoft would raise several billion dollars in financing, with additional funding being put up by banks, according to people familiar with the matter who the article did not name. Silver Lake and the CPP Investment Board (Canadian Pension Plan) would pony up the rest of the money.

Microsoft made a failed $44.6 billion bid for Yahoo in 2008. (Msnbc.com is a joint venture of Microsoft and NBCUniversal.)

Yahoo, which has been struggling to capitalize?of late on its huge position in?Internet traffic,?has said it is exploring options to boost returns for shareholders. Last month, Alibaba chairman Jack Ma?said his company was very interested in buying Yahoo.

The Wall Street Journal reported a deal for Yahoo could be done for around $16 to $18 a share, according to the people familiar with the matter. Yahoo's market capitalization?was around $20 billion based on its closing?price of $15.94 a share Wednesday.

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Source: http://bottomline.msnbc.msn.com/_news/2011/10/20/8411377-report-yahoo-may-get-bid-from-microsoft-silver-lake

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