Internet firm Yahoo is moving close to offloading stake in its Japanese business, Yahoo Japan, ahead of the conclusion of its wider strategic review, possibly within weeks, a report said.
"Yahoo moving closer to shedding its stake in Yahoo Japan," the
Financial Times has reported.
Yahoo's 35 per cent stake in the Japanese business, which has a market value of about $19 billion and net cash of $2 billion, is seen as an asset the company could dispose of relatively quickly, simplifying its strategic alternatives.
Various advisers are helping Yahoo consider its options including how the company could sell its Japanese stake.
"Goldman Sachs and Allen and Co are advising Yahoo in considering its overall options. But other advisers, including UBS, are exploring how the company could sell its Japanese stake," it noted.
A deal to divest the stake in Yahoo Japan could facilitate a sale of the remainder of the business.
The transaction could happen ahead of the conclusion of the broader strategic review, possibly within weeks, with the sale of the Yahoo Japan stake seen as removing one complication around the parent company, the daily noted.
Yahoo is less likely
to sell its Yahoo Japan stake to US investors, according to the newspaper.
It would explore a different structure that would allow the company or the Japanese telecommunications and media company Softbank that owns about 40 per cent of Yahoo Japan, to raise money against the stake and buy out Yahoo in a tax-efficient manner, it added.
With takeover speculation swirling around Yahoo, which dismissed previous chief executive Carol Bartz last month, discussions with potential buyers of the whole company have begun.
Last month, an internal memo sent by Yahoo chairman Roy Bostock and co-founders David Filo and Jerry Yang to their employees had sparked rumours about a possible sale of the Internet company.
In the memo, Yahoo said that a "strategic review" process was on to bring the company back to robust growth path and multiple parties have "expressed interest in a number of potential options."
Last week, the media report cited Chinese Internet company Alibaba Group's head Jack Ma as saying he is "interested" in buying Yahoo.
Yahoo holds nearly 40 per cent stake in the Chinese Internet group.
Besides, the US company is being approached by private equity firms such as Silver Lake for a potential deal.
Earlier, there were several failed attempts by technology giant Microsoft to acquire Yahoo.