Yahoo mulls sale of Asian assets worth around $17 billion: report
22 Dec 2011
Yahoo Inc is mulling to sell a large part of its Asian assets worth around $17 billion and focus on its core internet advertising business, DealBook yesterday reported, citing people briefed on the matter.
Yahoo's board is expected to meet today to discuss the plan, which would possibly see the once internet giant reject a takeover proposal from private equity firms Silver Lake and TPG Capital.
The report said that Yahoo, which holds a 40-per cent stake in Alibaba Group, may sell 30 per cent back to the Chinese e-commerce giant in a tax-free manner and retain a reduced stake in the Chinesse firm, run by founder-CEO Jack Ma.
The sale of 30-per cent in Hangzhou-based Alibaba may fetch Yahoo around $15 billion.
Yahoo, based in Sunnyvale, California, also owns 35 per cent of Yahoo Japan, while the remaining portion is held by Japanese internet firm Softbank. This stake is estimated at $5 billion.
The sale could be executed either as a stand-alone deal or alongside a minority investment in Yahoo by Silver Lake or TPG Capital, the report said.
Both Alibaba and Softbank have rights that effectively control to whom Yahoo can sell its holdings, but an outright sale would trigger tax implications associated with the gains on the investments.
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