Yahoo cofounder Jerry Yang wants to raise money and buy the company back.
But Yang’s cofounder, David Filo, is “not on the same page right now” regarding the direction of the company, a source close to the pair tells us.
Yang is supposedly working with PE firms to raise enough capital to take the company private.
Our source doubts Yang will find takers. This source asked to remain anonymous because he or she was not authorised to talk about these kinds of internal shenanigans.
About seven private equity firms are circling Yahoo, considering some sort of deal.
Any interested party will have to…
- Appease Alibaba CEO Jack Ma – presumably by allowing his company to buy back Yahoo’s stake.
- Appease Softbank, which co-owns Yahoo Japan with Yahoo – perhaps by selling Yahoo’s stake to Softbank.
- Figure out a way to avoid paying what one insider described as a seemingly-inevitable, huge, deal-killing ~40% tax on both of those transactions.
Update: A Yahoo! spokesman said, “The entire Board, including Jerry, is fully aligned and unanimous in support of the comprehensive scope of the ongoing strategic review. As always, Jerry’s singular focus remains to serve the best interests of Yahoo! – its shareholders, employees, users and advertisers.”
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