Private equity, AOL mull buying Yahoo: report

LOS ANGELES (BestGrowthStock) – Several private equity firms, including Silver Lake Partners and Blackstone Group, are considering buying Yahoo Inc (YHOO.O: ), the Wall Street Journal reported, sending its shares soaring 9.5 percent after hours..

The private equity firms were exploring the possibility of either teaming up with AOL Inc (AOL.N: ) on a joint bid or taking the struggling Internet company private themselves, the newspaper cited sources familiar with the matter as saying.

Shares in Yahoo, which finished Wednesday up nearly 6 percent, gained another 9.5 percent to $16.71 in extended trading.

Discussions had begun between the private equity firms, financial advisors and AOL but were at a “very preliminary” stage and had not yet involved Yahoo, the Journal cited the unidentified sources as saying.

Among the scenarios discussed, one involved Alibaba Group buying back Yahoo’s 40 percent stake in the Chinese firm and Yahoo selling off assets to rival media and technology companies. That would shrink Yahoo to a valuation that private equity firms could secure financing for, the newspaper reported.

Yahoo declined to comment on the report.

(Reporting by Eddie Chan; Editing by Gary Hill)

Private equity, AOL mull buying Yahoo: report