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Microsoft may help finance Yahoo takeover amid board changes

Yahoo logoYahoo’s sale is moving slowly, but new money from Microsoft may help accelerate it.

A new report from Kara Swisher in Re/code today said that Microsoft executives are meeting with private equity firms as they consider a takeover of the struggling internet giant. According to the report, Microsoft is willing to lend big bucks to get a sale going.

According to Swisher, many potential buyers don’t think Yahoo is serious about the sale, with CEO Marissa Mayer focusing on her own plans to change the company’s fortunes.

The news comes just hours after Starboard Value named new directors to Yahoo’s board in a bid to shake things up.

Microsoft’s Peggy Johnson, who has headed up some of the software giant’s most promising acquisitions since she was hired in August 2014, is reportedly leading the talks. But other execs are also helping out. The move would ensure that Yahoo, who has previously worked closely with Microsoft, stays strong and continues or improves partnership deals.

While Yahoo’s market cap is currently about $32.5 billion, after spinning off Alibaba shares the cost would drop to between $6 billion and $8 billion. Microsoft, one source told Swisher, could contribute $1 billion and see plenty of value from the investment.

This isn’t the first time that Microsoft has shown interest in acquiring a piece of Yahoo—in fact, the Redmond company made an unsolicited bid of nearly $50 billion in 2008.
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