It is becoming clear that there are now several suitors looking to buy Yahoo (NASDAQ:YHOO). The news has just started breaking overnight and in the early morning hours of Today, December 1st.
An investment group led by Alibaba's Jack Ma is rumored to be preparing a bid for all of Yahoo. It is possible that this bid could be around $20 per share. YHOO shares closed at $15.71 in its last session.
Those who act quickly could take advantage of this speculation. We believe that an insane bidding war is likely to occur due to so many suitors being involved. This could send YHOO significantly higher, and a premium of over $20 a share is possible.
Jack Ma's group has Blackstone and Bain in their consortium. This comes after a consortium led by Silver Lake and Microsoft reportedly bid $16.60 per share for a minority stake in the company on Tuesday, November 29th.
There are other players coming out of the woodwork as well. It looks like several different groups have been completing their due diligence for a purchase of Yahoo!
This is a constantly developing situation, but we believe a bidding war could send YHOO shares soaring. YHOO is an extremely attractive situation right now. Could a group move its bid up to $25 a share?
Yahoo! is a valuable property and we believe that it could end up being valued at over $30 billion ($25 a share). Yahoo! is now valued at around $19.5 billion ($15.71 a share). In 2008, Microsoft was part of a consortium which bid $44.6 billion for a full takeover of Yahoo!, so over $30 billion is not out of the question.