Yahoo investor: Sell to Microsoft for $22 a share
As Yahoo stock reaches new lows, it appears a private equity fund that owns a small percentage of Yahoo's stock has proposed a new deal for selling the company to Microsoft.
Mithras Capital Partners, which reportedly owns more than 1.9 million shares, or 0.14 percent of Yahoo, suggested a new deal Thursday to sell the company to Microsoft for $22 a share, a 74 percent premium on Yahoo's current stock price, Reuters reported. A Mithras Capital partner plans to send a letter proposing the deal to Microsoft and Yahoo on Thursday night, Reuters said.
Under the deal, the software giant "would unload Yahoo's Asian assets and nonsearch businesses, extract $3 billion worth of cost savings, and receive $2.8 billion of tax benefits," Reuters said. In other words, the software giant would pay $10.3 billion for Yahoo's search business.
In May, Microsoft walked away from its buyout offer of $47.5 billion to snap up all of Yahoo, only later to return with a partial buyout offer of $9 billion to acquire just the company's search assets.
The Internet company on Thursday dipped for the first time into the $12-a-share range, ending the day at $12.65. That followed Wednesday's crossing into the $13-a-share range. Analysts have noted that these crossings into new dollar ranges are psychological landmarks for investors.
Michelle Meyers is an associate editor who tracks online happenings in media, entertainment, and politics. E-mail Michelle.
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What i am curious is how this proposal suggests MS "unloads" Yahoo's non-Search Assets? They cant shut those services coz that would deplete traffic drastically (including to Search). And it wont be easy to find a buyer for those assets in this market, where no one wants to part with cash.
Are all VCs a little slow off the mark? Is it a job qualification?
Capitalize nuthin'
Yahoo shares have been on a freefall. All the sharholders have gotten is a massive loss of wealth.
Stop mouthing out meaningless rubbish.
Doh!!!!
Why this clown is still running Yahoo, after how he scrwed Yahoo shareholders so good, is a mystery.
Please tell me what long term plans Yahoo has after slashing staff and surrendering search to Google with the Ad deal. MSFT-Yahoo would have been a good combination, heck Microsoft was willing to spend more than a billion to retain employees, who are now being cut by Yahoo.
It has been bad for the investors, bad for the employee and bad for Yahoo. The whole deal was screwed up because, Jerry Yang still lives in pre-bubble era and thinks Yahoo is still his baby.
The investors deserve this, because they are the ones who re-elected the entire board of directors of Yahoo, and wow.. $12 per share. Yahoo will survive with lost value just like Lycos did.