Yahoo considering plan to take company private

Yahoo's stock price went up over 2.3 percent in trading today after a new rumor hit the Internet that the founders were thinking about taking the company private. Reuters reports that Yahoo co-founder Jerry Yang has been in discussions with private equity firms with that possibility in the cards. If Yahoo makes such a move it would involve both Yang and Yahoo's other co-founder David Filo rolling over their stock in the company.

After losing revenue for the past few years, Yahoo's board of directors have apparently decided to take some drastic measures in the last month. The board fired its CEO Carol Bartz and later admitted in a leaked email to employees that its financial advisors were "fielding inquiries from multiple parties that have already expressed interest in a number of potential options." That would indicate that it has received offers from other companies about a possible sale for Yahoo. Microsoft has been among the companies rumored to be interested in Yahoo.

In related news, Yahoo seems to have pulled out of the running among the companies interested in purchasing the Hulu streaming TV show and movie service. The Wall Street Journal reports that Yahoo's own internal issues are the cause. That still leaves Dish Network, Amazon and Google as possible bidders for Hulu. The story claims that Dish Network offered $1.9 billion for Hulu. Google has reportedly offered more money but with extra conditions. Hulu's owners might still decide that none of the offers would be good enough and as a result they may keep the company in their hands.

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8 Comments

They're! missing! the! point! - Yahoo! s*cks!
It's not 2001 anymore. Unless they find a way to effectively compete with the current line-up of Goo (which is highly unlikely) or someone (probably Microsoft) takes over and (hopefully but not likely) removes the brand from existance, it's going to slide downhill at an increasing speed.

thenonhacker said,
Microsoft should just buy Yahoo Mail.
Facebook should buy Flickr.
MS should also buy Yahoo Search and ad business too!

I thought it was almost impossible to go back private once you've been public? I don't know much about stock market and all that but I just remember something about crazy high costs and all that?

SHoTTa35 said,
I thought it was almost impossible to go back private once you've been public? I don't know much about stock market and all that but I just remember something about crazy high costs and all that?

IM pretty sure all a company has to do is payout the shareholders to go back to private,... WIth a handful of Yahoo people holding most of the company it would be possible to regain control over the company.

Not that i know anything about companies going private etc but thats how i would see it...

SHoTTa35 said,
I thought it was almost impossible to go back private once you've been public? I don't know much about stock market and all that but I just remember something about crazy high costs and all that?

They would have to force a buy back of the stock. It can be costly, but really it's very similar to an acquisition whereby shareholders are paid a "fair" amount for their stock in the company...

SHoTTa35 said,
I thought it was almost impossible to go back private once you've been public? I don't know much about stock market and all that but I just remember something about crazy high costs and all that?

It's not very common. the WHOLE reason you go public is you have consumer buy in. THEY are your investors. You have to answer to the public and be the subject of transparent operations.. like disclosing revenue and how much your Executives make.

When you go private basically what you are saying is "STOP watching over my shoulder and tell me how to run MY BUSINESS"

There are many classifications for business one is LLC, limited liability corporation, you incorprate for tax purposes and owner protection, but you are not public either.. Yahoo is basically tired of constant pressure from the industry to go in a direction THEY want.

A business (any business) exists for one reason and one reason ONLY.. to MAKE Money, period. no other way to hide it or excuse THAT's why you get into business to make money, the ONLY reason.

Private firms need investors to give them money without a board of directors (stockholders) telling them what to do with it. That's why the Yahoo founders are trying to do it.. it will be VERY expensive and risky to go private once they go public... They have to seek new money every year, which is a major PITA! I don't think they will go private personally, they just need to find a CEO and a strategy that actually works... If they can do that, they will be profitable, and no one will question how they do it, because they are obviously successful. They get more scrutiny when things are not going well, like now. That's what is prompting a change..

Besides its just a RUMOR..

Yahoo first needs to inovate, need to show it's not a dying company. They changed the mail look which was a welcome move. Can they make search better? Dont know why they shut down music software and service? Their home page is boring.

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