Yahoo! shares surge on takeover reports

November 9, 2010
The Yahoo homepage is seen on a computer screen in Washington, DC. Yahoo! shares surged on Wall Street on Tuesday as takeover reports swirled around the Internet giant.

Yahoo! shares surged on Wall Street on Tuesday as takeover reports swirled around the Internet giant.

Yahoo! shares were up 5.75 percent in early trading at 17.39 dollars.

AOL is reported to be among the firms eyeing the possibility of buying Yahoo! and the New York Post said Tuesday that private equity giant KKR is interested in either taking Yahoo! private or helping finance a deal.

The Post said KKR's interest in Yahoo! is separate from that of other private equity firms that have held preliminary discussions with AOL about a possible tie-up with Yahoo!

"The Valley is convinced Yahoo! will be sold. The blood is in the water," the newspaper quoted an unidentified " insider" as saying. "Yahoo! is in play."

Yahoo! chief executive has been seeking to carve out an identity for Yahoo! as it struggles to compete with and but the Sunnyvale, California company's share price has been largely stagnant since she took over.

The Post said a bid for Yahoo! would have to be in the range of 25 billion dollars "which is a big number for any private-equity firm to raise on its own."

The Wall Street Journal reported over the weekend that AOL has hired financial advisers to explore various strategic options for the company including a possible tie-up with Yahoo!, its much bigger rival.

The Journal said there had been no formal talks between the companies.

It also noted that an AOL-Yahoo! deal would be complex, in part because of difficulty in spinning off Yahoo's Asian assets, which include stakes in Yahoo! Japan and China's Group.

AOL is seeking a revival as an online content company and has been on an acquisition spree lately.

In September, AOL acquired TechCrunch, a leading Silicon Valley technology blog, Web video syndication firm 5min Media and Thing Labs, the company behind the Brizzly family of Web-based social software for sharing content.

AOL merged with Time Warner in 2001 at the height of the dot-com boom in what is considered one of the most disastrous mergers ever and was spun off by Time Warner in December into an independent company.

AOL chief executive Tim Armstrong has embarked on an aggressive round of cost-cutting since taking the reins at AOL last year and has said he plans to refocus the company on "content, ads and communications."

Explore further: AOL taps exec who famously warned Yahoo of trouble

Related Stories

AOL sells ICQ instant messaging to Russia's DST

April 28, 2010

AOL said Wednesday it has sold ICQ, the top instant messaging service in Russia, to Russian Internet company Digital Sky Technologies Limited (DST) for 187.5 million dollars.

AOL acquires Web video company 5min Media

September 28, 2010

AOL, the once high-flying Internet portal which is seeking to make a comeback as a content company, announced Tuesday it has acquired Web video syndication firm 5min Media.

Report: AOL, buyout firms mulling bid for Yahoo

October 14, 2010

(AP) -- Yahoo Inc.'s inability to snap out of a financial funk may be about to turn the embattled Internet company into a takeover target for the second time in less than three years.

Yahoo shares rise on buyout talk

October 14, 2010

(AP) -- Investors are running up the price of Yahoo Inc. shares after a report saying AOL Inc. and a group of private equity firms may bid for the Web company.

Recommended for you

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.