Mi­crosoft told po­ten­tial Ya­hoo bid­ders it might back bids

The Pak Banker - - COMPANIES/BOSS -

NEW YORK: Mi­crosoft Corp (MSFT.O) ex­ec­u­tives are in talks with eq­uity firms con­sid­er­ing bids for Ya­hoo Inc! (YHOO.O) say­ing that Mi­crosoft might be will­ing to of­fer "sig­nif­i­cant fi­nanc­ing" for their ef­forts, tech news site Re­code re­ported on Thurs­day. How­ever, Mi­crosoft has not made com­mit­ments so far to in­vestors, and any dis­cus­sions are ex­ploratory, Re­code re­ported, cit­ing un­named sources.

Mi­crosoft's move is an at­tempt to en­sure a good re­la­tion­ship with Ya­hoo's buyer, the web­site re­ported.

Ya­hoo launched an auc­tion of its core busi­ness in Fe­bru­ary af­ter it shelved plans to spin off its stake in Chi­nese e-com­merce giant Alibaba Group Hold­ing Ltd (BABA.N).

In an in­ter­view with Reuters in Fe­bru­ary, Ya­hoo Chief Ex­ec­u­tive Of­fi­cer Marissa Mayer said the com­pany will en­ter­tain of­fers as they come but its first pri­or­ity is a turn­around plan. Ya­hoo faces in­creas­ing pres­sure from share­hold­ers and in­vestors to sell its core busi­ness in­stead of go­ing through a spinoff that would sep­a­rate the com­pany from its multi­bil­lion-dol­lar stakes in Ya­hoo Ja­pan and Alibaba Group Ac­tivist hedge fund Star­board Value LP on Thurs­day said it would nom­i­nate nine can­di­dates for the board in an at­tempt to over­throw the en­tire board of Ya­hoo in­clud­ing its chief ex­ec­u­tive.

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