Healdsburg: According to sources, Microsoft Corp managers are in initial discussions with potential Yahoo Inc stockholders about subsidising to sponsoring to buy the troubled Internet Company.
According to sources, the discussions are initial and Microsoft is fixated on conserving the association between the two companies.
Microsoft and Yahoo have time-honoured search and advertising contracts.
Microsoft declined to comment but the sources stated that the private equity firms are interested in Yahoo approached Microsoft.
Starboard, which possesses a 1.7 percent stake in Yahoo, brought about a 2014 proxy battle that stirred out the whole board of Darden Restaurants, the owner of Olive Garden.
We have been extremely disappointed with Yahoo’s dismal financial performance, poor management execution, egregious compensation and hiring practices, and general lack of accountability, Starboard CEO Jeffrey Smith wrote in Thursday’s letter.
Yahoo is auctioning its essential Internet business, which includes search, mail and news sites. The stonewashed Internet inventor has been struggling to keep up with Alphabet Inc’s Google and Facebook Inc in the battle for online advertisers.
BGC Financial specialist Colin Gillis expects Starboard to drive for the sale with the backing of most Yahoo shareholders.
A lot of people want to see Yahoo’s value to be unlocked via a sale, but this board seems to lack some urgency in getting that done, Gillis said. This (proxy fight) should help keep the board honest.
Verizon’s Chief Financial Officer Fran Shammo said in December that the US wireless carrier could look at buying Yahoo’s core business if it was a good fit.
Verizon’s Chief Financial Officer Fran Shammo said in December that the U.S. wireless carrier could look at buying Yahoo’s core business if it was a good fit.