Speculation Rife Over Possible Yahoo Takeover
Yahoo is reported to have been in discussions about a possible takeover since the beginning of this month; although no formal offer has so far been placed.
They have been linked to private equity firm Silver Lake Partners and AOL in a joint bid, as well as the Blackstone Group in a separate offer. Other reports point to a possible joint bid by Rupert Murdoch's News Corp following proposals from a number of private equity firms. It is speculated by financial analysts however that a bid is likely to be met with resistance by Yahoo's major shareholders.
Yahoo and AOL have entered into takeover discussions in the past but failed to agree on a price. If successful this time, the purchase by AOL would enable a significant rise in their profile and thus their ad revenues.
Currently, Yahoo is valued at £12.8 billion. The takeover speculation, which it has yet to respond to, has led to its share price rising by 9.5% yesterday.