Yahoo deal talks with Asian suitors possibly over
updated 02:15 pm EST, Tue February 14, 2012
Yahoo talks on sale reportedly stopped
ahoo and its potential Asian buyers may have finished their negotiations to buy out the online entity, AllThingsD reported. China-based Alibaba was interested in buying the company, along with Japan's telecommunications giant, SoftBank. Sources claimed the end to the discussion was due to the complex nature of the cash split, among smaller issues.
Because Yahoo owns a 40 percent stake in Alibaba worth nearly $17 billion, the negotiations were purportedly complicated. The deal with Alibaba and SoftBank were meant to save Yahoo nearly $4 billion in US taxes. SoftBank holds a 30 percent stake in Alibaba.
The latest round of negotiations was held in Hong Kong, where the new issues were brought up, along with over-valuation. The talks can resume at any time, however.
Whether both or just one party is responsible for the deterioration of the talks isn't clear. Yahoo was said pushing for a mainly cash-rich deal, and the sources indicated that the talks stopped partly because Yahoo suddenly changed its mind about what it wants from the deal.
