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Chuan-Silicon Valley, the consortium 20 billion bid to buy Yahoo, Microsoft to provide financial sup

Beijing January 8, according to foreign media reports, the United States well-known technology site TechCrunch blog founder Michael Arlington (Michael Arrington) blog article published Wednesday, said sources recently revealed that by a number of Silicon Valley tycoons and investment banks, composed of Investment Group is currently considering a joint acquisition of Yahoo. Behind this acquisition, Microsoft to the investment group to provide a large degree of financial support.

The source said that under the acquisition plan side, the investment group will be about 13 U.S. dollars per share price offer to Yahoo was launched, the price only over Yahoo's current share price premium of about 20%. Click here to calculate the purchase price, Yahoo's market value of just more than 20 billion U.S. dollars. In this transaction, the acquisition of a significant portion of the funds will come from Microsoft. Microsoft will be the way the debt to the investment group to provide financial support.

By the financial impact of the tsunami, mergers and acquisitions business has been basically shut down the debt market, so to complete the acquisition of Yahoo, to a large extent through new and innovative ways to complete. Microsoft is holding the hands of 23 billion U.S. dollars in cash, while Yahoo's cash flow has been relatively stable. So Microsoft can borrow to the investment group to acquire the fixed returns. Yahoo access to the proceeds of the future, Microsoft will be mainly used to repay debt.

If the deal can be completed, then the final result may be Yahoo's own search and search marketing business sold to Microsoft, the sale conditions and in June last year, Microsoft's proposed acquisition of the conditions is basically the same. In the acquisition of Yahoo, after the completion of the transaction, the investment groups will form a new management team, to replace Yahoo's current management team. The new management team, the primary purpose is to recall last year, Yahoo executives who leave the service. Upon completion of the transaction in the acquisition, Yahoo will continue to remain independent, but with Microsoft in the financial and search and search marketing products to build a more closely knit.

Microsoft in June last year, had eight billion U.S. dollars bid to acquire 16 percent stake in Yahoo, as well as one billion U.S. dollars bid to acquire Yahoo's search business and take over business operations. Microsoft submitted the program also includes revenue-sharing partnership, based on a three-year search advertising prices better warranty, Yahoo will increase the annual operating profit of one billion U.S. dollars. January 31 last year, Microsoft submitted to the board of directors to Yahoo's acquisition offer, hoping to 31 U.S. dollars per share in cash plus stock to acquire all the shares of Yahoo. Yahoo subsequently turned down the request, that Microsoft seriously underestimated the value of the company. After several months of exposure, although Microsoft will offer up to 33 U.S. dollars per share, but still failed to reach an agreement with Yahoo. Ultimately, Microsoft announced in early May last year to abandon the acquisition.

Yahoo shares Wednesday on the Nasdaq in regular trading to close at 12.71 U.S. dollars, down 0.29 U.S. dollars than the previous day, representing a decrease of 2.23 percent. In after-hours trading, Yahoo shares fell 0.01 U.S. dollars, representing a decrease of 0.08 percent, to close at 12.70 U.S. dollars. In the past 52 weeks, the Yahoo stock at a minimum of 8.94 U.S. dollars, up to 30.25 U.S. dollars.