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Yahoo ( YHOO ) is about to hold a traditional auction for its core Internet search business and has begun sending nondisclosure agreements to prospective bidders, according to a media report. Rather than talking with buyers individually, “Yahoo is holding a traditional auction for the sale with formal bids,” according to an item carried by CTFN late Wednesday. Yahoo CEO Marissa Mayer is under intensified pressure from major investor Starboard Value, which has urged the exit of Mayer and some directors, as well as the spinoff of Yahoo’s core search business. Yahoo directors are close to offering at least two board seats to the activist hedge fund in order to avert a proxy fight, according to a report on Friday in the New York Post. Analysts say Yahoo is poised to lose more ad dollars to Facebook ( FB ), Alphabet ( GOOGL )-owned Google and high-profile startups such as Snapchat and Pinterest. On Monday, Yahoo said that it may have to write down the goodwill value of Tumblr , more than two years after the Web pioneer spent $1.1 billion to buy the microblogging site. Bloomberg reported last week that Yahoo was preparing to meet with potential suitors. Among the companies rumored to be interested in Yahoo are Comcast ( CMCSA ), Verizon Communications ( VZ ), AT&T ( T ) and Time ( TIME ). Rumors re-emerged this week that e-commerce giant Alibaba Group ( BABA ) might buy back a valuable stake that Yahoo now holds in the Chinese company. Yahoo’s Asian assets — comprised of its Alibaba holdings and a 35.5% stake in Yahoo Japan — represent the vast majority of Yahoo’s $3.8 billion market value. Yahoo owns a 15% stake in Alibaba, or about 384 million shares. But some observers say such a transaction is unlikely because of high tax implications for Alibaba. On Monday, Alibaba senior executives Jack Ma and Joe Tsai said they will spend a combined $500 million to buy company stock. It will be part of a $4 billion stock-buyback plan that Alibaba announced in August. Alibaba’s recent financial moves have some investors wondering if the Chinese conglomerate is ready to make a play for Yahoo , according to a report in Variety. Yahoo stock was down 0.5% in midday trading in the stock market today , near 32.75. Yahoo stock had risen in 11 of the previous 12 trading days, gaining 25% since early February, amid the buyout expectations. But shares still are down 25% over the past 12 months. Scalper1 News
Scalper1 News