The Wall Street Journal is reporting that Silver Lake Partners, a private equity firm, is working with one of its investors as well as Microsoft to put together a proposal to buy Yahoo.
Citing people familiar with the matter, the WSJ reported that under the proposal being discussed, Microsoft would put up several billion dollars of funding, with additional financing being arranged by banks. Silver Lake and one of its investors, Canada Pension Plan Investment Board, would kick in the rest of the equity, which would be less than what Microsoft contributes, the Journal report said.
A Microsoft spokesman declined to comment on the matter.
The firms involved haven’t decided whether to proceed with an offer, and the combination proposed above is one of several being discussed, according to the WSJ, which says at least nine private-equity firms, including Silver Lake, have been studying a potential buyout of Yahoo.
Two weeks ago, Reuters reported that MIcrosoft was considering a bid for Yahoo, and perhaps seeking a partner in doing so. Shortly after, though, Bloomberg reported that Microsoft wasn’t anywhere close to making an offer on Yahoo and that senior executives at the company weren’t involved in discussions for a Yahoo bid.