Was a Private Equity Bid for Yahoo Thwarted by Microsoft ?
Monday, February 11, 2008 | 06:00 AM
in Corporate Management | M&A | Valuation | Web/Tech
Last week, before the Microsoft (MSFT) deal was rejected by Yahoo's Board, some interesting chatter was bouncing around NYC.
The latest rumor to make the rounds was that Yahoo (YHOO) was just about to announce a negotiated transaction for the sale of the company to an East Coast private equity firm. Then Microsoft stepped in the way. We first heard this story sometime between Mister Softee's $31/share, $44 billion hostile bid, and this weekend's rejection of that offer by Yahoo as an insufficient valuation for all of Yahoo's properties.
The rumors of this now pre-empted private bid include the following:
-to be announced as early as February 5th;
-negotiated price was in the $23-25 range;
-some Yahoo! properties to be spun out to shareholders;
While this remains unconfirmed by anyone willing to make an on-the-record statement, it is well sourced enough that I suspect there is sat least some degree of truth to it.