Private Equity Firms Zero in on Yahoo for Possible Takeover Deal

New reports reveal that private equity firms are pondering over the idea of buying out Yahoo! Inc.

According to a report by the Wall Street Journal, the firms that could propose a takeover, include Bain Capital, Silver Lake Partners, Blackstone Group and TPG Capital.

Apparently, the WSJ reprort references some unnamed sources familiar with the matter.The report also claims that according to a few private equity firms, it is highly possible for a company to acquire Yahoo! at a price of not more than $16-$18 per share.

Yahoo!’s shares underwent a moderate growth of 47 cents, or 3 percent, thus closing at $15.94. In extended trading, on the other hand, the company’s stocks have been seen rising by about 2 cents.

The last couple of years have not been good for Yahoo!, which was once, until recently, considered as one of the brightest star in the World Wide Web universe.

“This would be a very complicated deal, due to Yahoo!’s existing relationships with Alibaba and Yahoo Japan,” writes Fortune editor, Dan Primack, as reportedby Bizmology.

”Moreover, it would be the largest agreed-upon LBO since before the financial crisis. So any deal would be a long ways off,” he added.