While Yahoo (NASDAQ:YHOO) still grapples with where exactly it wants to be in the internet space, high-profile bidders are going ahead with their buying plans without the company’s consent. High on the list are Alibaba and Softbank, who are already in talks with private equity firms to finalize a bid on Yahoo. [1] The last week also saw more private equity firms signing up the confidentiality agreement with Yahoo to assess the company further. [2]
See our full analysis for Yahoo’s stock here
Hostile Takeover May Not be Ruled Out
The official line from Yahoo’s board has kept fluctuating since the speculation over the company’s sale. However, it seems that the “all options open” stand has not gone down too well with the likes of Alibaba, who would be eager to reclaim their own stake back from the beleaguered Yahoo and is working closely with private equity firm Silver Lake on how to achieve this.
As a result, private equity players that are not bound by a non-disclosure agreement (NDA) have also entered the fray. While these companies would undoubtedly find it harder to obtain detailed financial and strategic information on the company, the development itself is a signal of a possible all-out-war to claim stakes in Yahoo. It is a distinct possibility now that Yahoo’s fate might not go as per its board’s desires.
We have a price estimate of $17 for Yahoo’s stock, which is just ahead of the current market price.
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