Another Rumor Of Yahoo! Bid

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By Douglas A. McIntyre Published
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Reuters has reported that Bain may bid, perhaps with another PE firm, to buy Yahoo! (NASDAQ: YHOO) The offer would be coordinated with two Asia companies in which Yahoo! owns large stakes–Alibaba and Yahoo! Japan.

It is not clear how the buyers would split Yahoo!’s assets. Alibaba and Yahoo! Japan would like to get back the stakes that the portal company owns. There is a theory that if these are distributed to the Asia firms with tax advantages of Yahoo! investors in mind that the total value of Yahoo! could be $20.

The problem that investors face is one that Yahoo! has had for several years. Its cost base is already low, most recently cut by former CEO Carol Bartz. In the meantime, Yahoo!’s revenue has flattened. It faces harsh competition for the display advertising on which it counts for most of its revenue. Facebook, in particular, has taken a huge market share in this advertising segment. It will be hard to increase Yahoo!’s revenues and its margins.

 

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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