When news broke out that Yahoo is seriously considering selling itself, many parties weighed in on the situation. For one, the proposed spin-off, Yahoo's Alibaba stake, could be scuttled. However, there is one name that has emerged from the chaos as a possible buyer of he embattled Internet pioneer.
Entrepreneur Peter Chernin, insiders have said, is looking into the deal. Chernin is a Twitter board member and also has a joint venture with AT&T to build video streaming assets. “Peter has been having conversations about it,” a source privy to the private talks remarked.
Verizon and SoftBank have also been reported to be interested in buying Yahoo. However, recent news has dropped SoftBank from the possible buy-out, New York Post reported.
Private equity firm TPG is also reportedly asking around trying to get more details on their possible acquisition of the company.
Analysts have pegged the valuation of Yahoo core web businesses at $3.9 billion. Yahoo had recently increased spending rights on TV shows like Community and even hired media talents like Katie Couric. Earlier this year they also ponied up on NFL streaming rights for overseas markets.
It does not help Yahoo that many analysts also consider Yahoo's valuation to be rapidly dropping. Dave Morgan, chief executive of Simulmedia, suggested that declining valuations may be hastening the board's decisions. “Everybody expects rough waves are coming,” he was quoted saying.
The Yahoo board has also come under strict scrutiny. After a wave of resignations from the board under Marissa Mayer's leadership, it has come to public knowledge that the board is simply a rubber stamp to Mayer's decisions, whether they be good or bad. This problem with the board has also put to question the major decision to spin-off Alibaba into a new company.
The board is currently weighing its options on how to get the best valuation out of Alibaba. Also, one more thing that the board must consider is firing Mayer as top executive, USA Today noted. If that happens, her severance package will be $157.9 million. This will reflect very badly on the board and the company at large as it struggles to compete with rivals which have all but swallowed it up.