Yahoo Considering Selling $17 Billion Worth of Asian Interests

By Tracey E. Schelmetic December 22, 2011

Yahoo may be about to divest itself of some significant Asian holdings, the New York Times is reporting today. The company's board is apparently toying with the idea of selling its rather valuable holdings in the Alibaba Group of China and Yahoo’s Japanese affiliate back to their majority owners. The transaction would be worth about $17 billion, New York Times sources have said.

Yahoo's board is reportedly meeting today to go over the mechanics of the deal and decide whether to pursue the sale. If directors approve the Asian sales plan, they may also decide to reject separate investment proposals by Silver Lake and TPG Capital that would have given control of the company to the private equity firms and Yahoo’s management, the Times said, based on information from confidential sources.

While Yahoo's Asian assets are considered some of its most valuable holdings, analysts believe the company is eager to raise cash to try and shake some life back into its U.S. operations, which in recent years have seen declining revenue in favor of newer players like Google and Facebook, and a loss of some of its most senior executives.

A lot of cash is what the sale would raise: the Times estimates that Yahoo’s 40 percent in Alibaba is worth about $12 billion and its 35 percent stake in Yahoo Japan at about $5 billion. It could be executed either as a stand-alone deal or alongside a minority investment in Yahoo by Silver Lake or TPG, reported the newspaper.

Analysts expect that Yahoo will likely hold onto a small stake in China's Alibaba to take advantage of skyrocketing Chinese Internet revenue, according to the report.

Tracey Schelmetic is a contributing editor for TechZone360. To read more of Tracey's articles, please visit her columnist page.

Edited by Jennifer Russell

TechZone360 Contributor

Related Articles

Robotic Process Automation vs. Business Process Automation in the Modern Customer Centric Enterprise

By: Special Guest    3/23/2018

There's a lot being said about robots these days and about Robotic Process Automation (RPA). RPA describes a software development toolkit that allows …

Read More

How to Grow Your VR Company

By: Special Guest    3/23/2018

Developers from every walk of life are now flocking to Virtual Reality as it has grown from a niche idea to a legitimate hardware. Companies all over …

Read More

Satellite Firm Swarm Technologies Facing Death After Defying FCC

By: Doug Mohney    3/22/2018

Swarm Technologies is the most important satellite company you've never heard about. But a failure to heed the Federal Communications Commission (FCC)…

Read More

Apple, IBM Partner on AI, ML

By: Paula Bernier    3/21/2018

Apple and IBM are collaborating to make it easier for developments to create AI-powered applications. The effort will employ IBM Watson Services for C…

Read More

5 Influential African-Americans In Tech

By: Special Guest    3/19/2018

It's no secret that Silicon Valley has a problem with diversity. Apart from being male-dominated, most of its workforce is white or Asian, with whites…

Read More