Yahoo Is Said To Sell A Minority Stake To Private Placement And Buy Back In Large Scale Then

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According to the reports of Reuters, informed sources revealed that Yahoo was planning to sell a minority stake to a private equity investment firm, and buy back stocks in large scale subsequently, aiming to gain time to reverse the state of loss in the company.

In recent years, Yahoo's share of U.S. Internet search market has continued to fall, while Google still remains the lead and Microsoft is also expanding its market share. Meanwhile, Yahoo declared that the market share of display advertising in the U.S. also fell. Meanwhile, Yahoo declared that the market share of display advertising in the U.S. also fell.

The informed sources said that according to this plan—this is one of the many options that Yahoo's board of directors is considering—a private equity investment company will acquire 20% stake of Yahoo, and will enter into an alliance of equity concentration with the co-founder Jerry Yang and David Filo of Yahoo. Yang and Filo hold 9.5% of Yahoo’s shares toghther.

The informed sources said, if making the initial investment of private equity firm less than 20% of shares in the company, Yahoo's ...
... board of directors can prevent holding shareholders' meeting.

This private equity firm and those two founders then will increase the rate of their combined stake to about 40% to 45% through a massive share buyback. Yahoo will provide finance for stock buybacks through loans. Yahoo will provide finance for stock buybacks through loans. Yahoo will provide finance for stock buybacks through loans.

This arrangement and transaction will allow the two co-founders of Yahoo and new investors to control the company more effectively, so they have more time to improve the company's business, without having to sell some or all of the company. This is indeed a good idea.

Another informed source said that, according to the plan, Yahoo will also get more time to seek collaboration with Facebook, Twitter, Yelp and other social media. It is estimated that Yahoo will enter the mobile market.

Earlier reports showed that Yang plans to make Yahoo privatization with private equity companies. Bu t this statement has not been proved.

Yahoo spokeswoman declined to comment on this.

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