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Yahoo ’s ( YHOO ) board on Friday formed a committee of independent directors to entertain offers for its core Internet business, if they come. One of the prospective buyers , Verizon Communications ( VZ ), this week said it does not want to “catch a falling knife,” referring to the state of Yahoo’s business. Private equity firms are said to be interested in Yahoo, but IAC/InterActiveCorp ( IAC ) has signaled it’s not in the running. Aside from forming a committee of independent directors to explore possible transactions, Yahoo on Friday announced that it will bring in Goldman Sachs, JPMorgan and PJT Partners as financial advisors, along with law firm Cravath, Swaine & Moore. Yahoo stock was up 2.5% in midday trading in the stock market today , near 30. Bloomberg reported earlier this week that activist investor Starboard Value, which has been pushing for changes, could wage a proxy fight at Yahoo. Yahoo dropped plans last year to spin off its stake in Alibaba Group ( BABA ). Executives have said they might create a separate company that would house Yahoo’s Internet business and its stake in Yahoo Japan, but a lot of options appear to be on the board for the struggling Internet company. Verizon has talked up its interest in buying some Yahoo assets “at the right price.” Verizon last June acquired AOL for $4.4 billion, including about $300 million in AOL debt. AOL’s Internet business had been improving, while Yahoo’s display advertising growth has slowed, but Yahoo has been focusing on mobile and other growth areas. UBS telecom analyst John Hodulik, in a research report Thursday, said Verizon seems in no rush, based on a meeting with AOL’s chief executive, Tim Armstrong. Armstrong told UBS that Verizon would need more information on the state of Yahoo’s business under due diligence, according to Hodulik’s report. “They’d have to start a process, share all the data regarding audience, distribution, monetization and talent,” Armstrong told UBS. “Everything at this point is theoretical. Assets with rapidly a growing number of users are very expensive. Even those with a stable number of users are expensive. That said, you don’t want to catch a falling knife. Hard to know until we get a look.” Scalper1 News
Scalper1 News