Yahoo Attracts Many Suitors, Weak Offers

$20.6B price way down from 2008
By Mark Russell,  Newser Staff
Posted Dec 1, 2011 5:52 AM CST
Updated Dec 1, 2011 6:16 AM CST
Graphic shows corporate financial data for Yahoo Inc.   (Associate Press)
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(Newser) – The good news: There are plenty of suitors shopping for the 19.9% minority stake Yahoo is peddling. The bad news: Everybody's looking for a deal. A Microsoft-linked private equity group has put in a bid that values the onetime behemoth at $20.6 billion, reports the Guardian—less than half the $44.6 billion that Microsoft offered three years ago. And at $16.50 per share, that offer is just slightly more than Yahoo's $15.70 share price, though another group is offering $1 per share more. "The offer is disappointing," said one analyst. "Investors who've been buying Yahoo recently were hoping for a significant premium and a takeout of the full company, and this falls short on both counts."

Yahoo is looking to keep any sale below 20% of the company so that it can avoid a shareholder vote on the deal. Despite Yahoo losing 7% of its share value this year—and 44% since 2006—the Microsoft-backed group has plenty of competition for Yahoo, including Chinese site Alibaba and private equity firms like Blackstone, KKR, and TPG Capital.

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