Is Microsoft negotiating with possible Yahoo buyers? – Modern Readers

An exclusive report from Re/Code cited numerous sources in saying Microsoft has been in talks with private equity firms interested in purchasing Yahoo, and reportedly offering to lend them money to bolster their bids to purchase the struggling firm. This comes amid countless whispers about how Yahoo does not seem to be taking its sale process seriously.

Despite CEO Marissa Mayer's best efforts to turn the company's fortunes around, Yahoo is officially on sale. But many have been critical about the lack of drive regarding the sale process, as the company seemingly goes through the motions and stands by Mayer and her attempts to be the architect of a Yahoo turnaround. Things, however, have gotten quite interesting in recent days, as activist shareholders have been trying to "help" Yahoo help itself, with Microsoft also willing to help some of Yahoo's more ardent suitors.

On Thursday, one of these shareholders, Starboard Value, went on the record and announced it is naming a new board of directors. The company's Jeffrey Smith said this move was done pursuant to bringing "credibility to a process that has been publicly criticized repeatedly for being too slow, fraught with conflicts of interest and very difficult for highly qualified and motivated strategic and financial buyers to access much-needed diligence information."

Re/Code's Kara Swisher wrote that Microsoft's potential inclusion in these Yahoo sale talks could make the process less of a "farce." She cited sources in saying that Microsoft partnerships and acquisition strategy head Margaret Johnson is part of Redmond's initiative to help certain buyers make a solid bid for Yahoo. But for now, Microsoft has not yet made any solid commitments to any of these hitherto-unnamed buyers, as all talks are, for the meantime, "exploratory."

"Sources said that the reason for providing financing would be because Microsoft wants to ensure that if Yahoo is sold, whoever buys it will be a good partner going forward," Swisher added in her exclusive report. "That makes sense, since Microsoft has close search and advertising ties with Yahoo, part of a longtime partnership."

Currently, Yahoo's core business is valued at about $ 6 billion to $ 8 billion, though sources close to the company's board claim that it has an asking price of $ 10 billion. As for Microsoft, Swisher's sources said that the company had "no interest in making a more significant bid," but there are others who do, such as telecoms giants AT&T, Verizon, and Comcast, and private equity and investment firms such as Advent International and Vista Equity Partners.

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