Alibaba to Possibly Make a Bid for Yahoo!

According to several sources, Alibaba Group Holding Ltd. along with Softbank Corp., are engaged in advanced discussions with Blackstone Group LP and Bain Capital LLC regarding a bid for Yahoo!

These sources also commented that the joint bid may estimate Yahoo! at $20 and above per share - the reason is that there are tax savings tied with the Yahoo! stakes in Alibaba and Yahoo Japan.

The sources disclosed this information on the condition of anonymity.

Yahoo's board is also in talks with bidders like TPG Capital and also a group led by Silver Lake who offered a minority stake in this Sunnyvale, California-based Internet company, as reported by the San Francisco Chronicle.

In an email statement, a spokesman for Hangzhou, China-based Alibaba, John Spelich, said,"Alibaba Group has not made a decision to be part of a whole-company bid for Yahoo."

Data compiled by Bloomberg states that at around $20 per share, Yahoo! will be valued at around 24.1 times higher than its earnings in the past year.