Can Alibaba Buy Yahoo! – May Be, May Be Not!

It is no secret that yahoo is up for sale and talks are on with many suitors who are interested in buying the once mighty internet giant. Yahoo is keeping its cards close to its chest, about whether it would sell itself in parts or in full and many Silicon Valley brains are at work to decide its future.

Yahoo! has been on lifeline support for quite sometime with the help of Microsoft, however, as times are changing quite fast, it can no longer sustain its business model to match its rivals like Google or new giants like Facebook. When the market got abuzz with the news that Yahoo! is up for sale, many thought Microsoft as its natural and obvious buyer. However, there was a twist in the tale., the leading B2B portal, where in yahoo has 40% stake, too expressed its interest in purchasing it.

In the past the relationship between Alibaba and yahoo! haven’t been quite comfortable and is keen to buy back its stake. Given the Yahoo!’s current financial situation, this could be the right time for Alibaba to pitch for buyback or buy Yahoo! in full.

Even though Yahoo’s current market stands at around $18.8 billion, it is a widely accepted fact that it is a deteriorating asset. Whosoever buys yahoo needs to have sound financial backing and out of box ideas to revive it. Industry analysts continue to say that yahoo is still one of the best internet properties; it just needs the right kind of brains for relaunch.

What can probably stop Alibaba?
If there is anything which can stop Alibaba’s effort to buy yahoo it could be the interference of US government. US government doesn’t enjoy the best of relations with China. After their recent scuffle with Google , US government may not want a Chinese company to buy what used to be symbolic of US’s dominance of internet.

So, What could be a possible way out? One possibility could be that Alibaba gets to buy back its stake and Microsoft gets to buy the rest of yahoo! The big question is – are investors ready to take some strong decision?

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