Google, the Web-search king, is in talks with at least two private-equity firms to help finance an agreement to acquire Yahoo!’s core business, according to a report.
Google and prospective partners have been in early-stage talks but haven’t structured a formal proposal, The Wall Street Journal reported, citing a person familiar with the matter.
Such a deal would likely draw close scrutiny at the U.S. Department of Justice over antitrust concerns. In November 2008, Yahoo announced that Google had terminated an advertising services agreement between the two companies after the DOJ indicated it would seek to block the deal.
More than a year later, Yahoo and Microsoft announced receiving approval at the DOJ and European Commission to proceed with a 10-year search agreement.
Now, Microsoft is in talks about a potential joint proposal for Yahoo! with private-equity firm Silver Lake Partners and the Canada Pension Plan Investment Board, the Journal reported, citing sources familiar with the matter. The software giant isn’t seeking full ownership of Yahoo but would act as a financier – likely contributing several billion dollars – in exchange for being able to retain influence over Yahoo!’s future, according to the article.
Last week, Yahoo reported a third-quarter profit of $293 million, or net earnings per diluted share of $0.23, on revenues of $1.217 billion. In September, Yahoo!’s board of directors removed Carol Bartz as CEO and named Tim Morse as interim chief executive. Yahoo! is searching for a permanent CEO, and the Journal reports, has been shopping itself out to potential buyers since Bartz was fired.
Shares of Yahoo! (YHOO) were up 48 cents or 2.98 percent to $16.60 on the NASDAQ as of 1:04 ET.
