AOL and a number of private-equity companies are in the initial talks to make an offer to purchase Yahoo!, according to reports published in the Wall Street Journal.
The discussions, which are still at an exploratory stage, do not include the Yahoo! as the companies are still mulling over their options and running a number of studies and forecasts on the viability of their respective bids. The bid is being considered by AOL and private equity firms where they have started discussing the possible options with the financial advisers.
There are still no reports of them reaching a conclusion and finalizing a proposal as there are many complexities involved in the process, the Journal reported.
At least two firms, Silver Lake Partners and Blackstone, have shown interest in joining hands with AOL to put forward a proposal of acquiring Yahoo! There are also some reports saying that at least two other firms are also interested in joining the offer if it actually reaches the final stage.
Yahoo! has hired the services of Goldman Sachs to protect itself from any bids put forward for its acquisition, including any in-house board measures and activist investors' revolt. The company has discussed a number of approaches to deal with the matter if a bid is finally made.
Yahoo! has a market capitalization of $20.56 billion and any takeover bid will be profitable for AOL as it will be able to significantly increase its market value from its current worth of $2.68 billion.
Yahoo! shares saw an up tick of 13% to close at $17.23 in after-hours trading Wednesday.
