Yahoo Board to Consider Sale of Stakes in Asian Assets
The holdings in China's Alibaba Group and Yahoo Japan would be valued at about $17 billion.
The board of Yahoo will in a meeting later on Thursday consider the broad outlines of a deal that would see the Internet company sell much of its stakes in Asian assets to their majority owners, the New York Times reported.
The assets are a stake in China's Alibaba Group and Yahoo Japan, which is majority-owned by Softbank.
The proposed deals, which would avoid taxes, would value those holdings at about $17 billion, the Times said citing people familiar with the situation.
The proposal values Yahoo’s 40 percent stake in Alibaba at about $12 billion and its 35 percent stake in Yahoo Japan at about $5 billion. However, Yahoo is expected to keep 15 percent in Alibaba to benefit from upside in the fast-growing Chinese Web space, it said.
Although Yahoo’s board could reject the Asian deal proposals or delay an approval, momentum has been building for the deal, the Times said.
The transaction could happen as a stand-alone deal or in tandem with a minority investment in Yahoo by private equity firms Silver Lake or TPG Capital, according to the Times. Those deals would give control of the firm to the private equity firms and Yahoo’s management.
Spokespeople for the companies involved wouldn't comment, the paper said.
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