Yahoo may be for sale, hires investment bank to help field “inquiries from multiple parties”

imageThere have been recent rumours that Yahoo is looking to sell itself, and an internal Yahoo memo to all staff does not do much to dispel the rumour.

Jerry Yang sent a memo to all staff extolling the value of the company, including owning “nine of the #1 properties in the U.S.”, being “a leader in display advertising” and having “an iconic brand”.

He then spoke of a strategic review to enhance the “value of Yahoo! for all of its stakeholders”.

The review will be led by investment bank and adviser to Yahoo Allen & Company, and he observed that they were “fielding inquiries from multiple parties that have already expressed interest in a number of potential options”.

While Jerry remains cagey in the memo and talks about Yahoo as a company which “endures”, a Yahoo insider has recently claimed “Yahoo is open to selling itself to the right bidder” according to TNW with Business Insider claiming Microsoft MSN in particular were interested.

Microsoft famously attempted to purchase Yahoo for $ 44.6 billion in 2008.  The company is currently trading for close to a market cap of $18 billion, and while Microsoft may once again by interested, I suspect on this occasion the only segment they would be interested in would be the search business, rather than the whole company. Microsoft already had an existing deal to provide the search back end for Yahoo, giving Bing a de facto 30% US market share.

Read the full memo at Business Insider here.

  • Milad Bazzaz

    Microsoft probably only needs Yahoo mail and the search part…

    they already have a search agreement for 10 years but it would be safe to buy that flat out if the price is right.

    Maybe, Microsoft will wait until Yahoo has a buyer and then try to buy the search business from the next ownership of Yahoo.

  • Anonymous

    Microsoft: Bob, I’ll bid $1 please. thx