November 10, 2010 by Jen
Search experts Yahoo have hit the headlines this week, following a series of rumours surrounding news of an alleged takeover bid being in the pipeline. The company have seen their share prices climb by nearly six percent to almost $18 when trading commenced in New York, prior to them dropping to a two percent increase by the end of business.
A number of unconfirmed reports in the media are suggesting that Yahoo bosses are in negotiation for a takeover deal that would see the company move from a public to private firm. Although there is little firm evidence to actually back up these claims, the share prices have reaped the benefits of the rumour-mongering. The deal is said to be being prepared by investment firms in order to change the status of the search company.
When media leaders contacted the e-commerce specialists Alibaba over the rumours, they declined to comment. The New York Post has reported that KKR, the private equity organisation in the US has expressed an interest in financing a deal to make Yahoo in to a private company, and AOL have been reported to be interested in striking a deal. The rival web company have been purchasing a number of organisations recently, apparently in a bid to strengthen their position as a specialist in online content.
Steve Weinstein, an analyst with Pacific Crest Securities has pointed out that Yahoo only recently rejected an offer from Microsoft for a takeover, and it is unlikely that the organisation would be looking to alter their status soon after rejecting the bid from their rival search company.
Yahoo themselves have stated that they have no comment with regard to the rumours doing the technological rounds relating to a takeover bid, and industry experts are expressing their doubt that any such deal is currently under negotiation for the firm.
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