Alibaba Group Holding Ltd. and Softbank Corp. are in advanced talks with Blackstone Group LP and Bain Capital LLC about making a bid to buy Yahoo! Inc. in its entirety, according to three people with knowledge of the matter.
A bid may value Yahoo at more than $20 a share because of tax savings tied to the Internet company's stakes in China-based Alibaba and Yahoo Japan, said two of the sources, who declined to be identified because the discussions are private. Yahoo shares advanced 6.9 percent to $16.79 in extended trading.
Yahoo's board is meeting to discuss offers it received for a minority stake in the Sunnyvale, California-based company from bidders including TPG Capital and a group led by Silver Lake, other sources said this week. Silver Lake's bid valued Yahoo at about $16.60 a share, but TPG Capital's offer was higher, the sources said.