According to a report in Thursday’s Wall Street Journal, Silver Lake Partners is working with the Canada Pension Plan Investment Board and Microsoft Corp. to put together a proposal to buy Yahoo Inc.
Although none of the parties involved will publicly comment on the report, sources speaking with the WSJ confirm that the current proposal calls for Microsoft to present several billion dollars worth of funding, with additional financing being arranged by banks.
If the WSJ report is accurate, Silver Lake and the CPP Investment Board would “kick in the rest of the amount,” which would be less than what Microsoft would have to cough up.
While the exact number isn’t known, at least nine firms are said to be mulling a possible Yahoo acquisition. And in the past, Yahoo has expressed more than an open willingness to consider an offer to be acquired.
Industry sources believes that a deal would likely cost a buyer somewhere between $16 and $18 per share.
As of Thursday, Yahoo was drifting around the $16.00 mark on the NASDAQ Stock Market, would would give the company an approximate market capitalization of $20 billion.