Yahoo considers selling minority stake to private equity company

YAHOO is contemplating the sale of a minority stake to a private equity firm followed by a large share repurchase, in a bid to buy time to turn the firm around, people familiar with the matter have said.

The once-dominant internet pioneer has seen its share of the US internet search market fall while Google maintains its lead and Microsoft continues to expand there. Yahoo’s US display ad impressions have also been on the decline.

Under such a plan, a private equity firm would take a stake in Yahoo of around 20 per cent, and ally itself with Yahoo co-founders Jerry Yang and David Filo, who together own another 9.5 per cent of the company, these people said.