Reports: Yahoo may sell Asian assets


(FILES)The Yahoo homepage is seen on a computer screen in Washington, DC in this October 19, 2010 file photo. (NICHOLAS KAMM/AFP/GETTY IMAGES)

Yahoo shares spiked in late trading after reports from the New York Times and the Wall Street Journal indicated that the company may be considering a sale of its Asian assets to Alibaba.

The Times, citing people “briefed on the matter,” reported that Yahoo’s board is considering selling its holdings in the Alibaba Group and Yahoo Japan for $17 billion to Alibaba and Softbank — Yahoo Japan’s majority owner. The Journal report backs up that figure.

According to the reports, Yahoo would swap some of its holdings in Alibaba and all of its holdings in Yahoo Japan for stake in two new legal entities comprising cash and “certain operating assets.” Yahoo would reportedly keep a 15 percent stake in Alibaba.

The company has been facing questions about its future for months, particularly after firing its outspoken chief executive, Carol Bartz, in September. Many of its most outspoken investors have pointed to the possibility of splitting off the company’s assets in Asia to help Yahoo emerge as a slimmer company.

Yahoo shares closed nearly 6 percent up on the news of a possible deal.

Related stories:

Yahoo’s site deepens connections with Facebook by extending sharing options in more sections

Yahoo trends: iPhone beats Casey Anthony, Kim Kardashian

Lawmakers trade barbs in hearing on Stop Online Piracy Act

Hayley Tsukayama covers consumer technology for The Washington Post.

business

technology

Success! Check your inbox for details. You might also like:

Please enter a valid email address

See all newsletters

Comments
Show Comments
Most Read Business

business

technology

Success! Check your inbox for details.

See all newsletters