The search engine outfit Yahoo appears to be facing the inevitable and girding its loins for a potential sale.
According to Reuters, Yahoo’s long-time advisers Goldman Sachs and Allen & Co are preparing to give potential buyers financial information.
It is a sign that Yahoo is about to put itself on the auction block.
Potential buyers including large technology and media companies, while private equity and international companies have proposed many different options regarding Yahoo’s various businesses. But a sale appears to be the best way forward. If only because it would get rid of the biggist millstone about the company’s neck – its board.
Yahoo has been consistently underperforming and made some howler decisions. If it had seen the writing on the wall it would have taken Steve Ballmer’s cheque years ago.
Ballmer made a bid for Yahoo which turned out to be extremely generous. However, Yahoo’s board hung out for even more than was reasonable and muttered the usual anti-Microsoft diatribes and lost themselves a fortune as a result.
Attempts to turn the company around failed and the share price is much lower than it was when Ballmer made his bid.
Jack Ma, the founder and CEO of Chinese e-commerce giant Alibaba, told an audience at Stanford University that he would be “very interested” in buying all of Yahoo.
Whatever happens it will take months for Yahoo to decide its future.
In a memo to employees last month, Yahoo executives said its advisers were “fielding inquiries from multiple parties that have already expressed interest in a number of potential options.”