Yahoo is open to offers

ADVERTISING FIRM Yahoo is open to offers from "multiple parties", according to a memo from co-founder Jerry Yang.

The firm has unspecified offers from unnamed parties according to the memo sent to Yahoo staffers, which has been seen by Bloomberg.

"Our advisers are working with us to develop ideas that we will pursue proactively," wrote Yang. "They are fielding inquiries from multiple parties that have already expressed interest in a number of potential options."

It is not surprising that the company is open to offers, and nor is the suggestion that it will take months and not weeks to find an agreeable one. Recently Yahoo, which was big in portals when portals were big, fired its CEO Carol Bartz and the possibility of a Microsoft purchase has been raised again.

The clue is perhaps in the line "inquiries from multiple parties that have already expressed interest in a number of potential options", as well as the companies' histories.

Yahoo might as well be owned by Microsoft, especially as Microsoft runs its search and advertising operations for it, and it could well be Microsoft that steps in to buy it. Other possible suitors include the Chinese firm Alibaba.

Yahoo replaced Bartz with CFO Tim Morse as interim CEO and the firm is looking for a full time replacement.

Until then it sees its current business, particularly its strong presence in Asia, as key parts of its proposition.

"By whatever measure you want to use - engagement, quality of products and services, our value to our advertisers - we all feel that we have what it takes to succeed," added Yang in the memo.

"Also, our Asia assets remain one of our top priorities and we continue to work well with the teams there."

A deal with local partner Alibaba has been mentioned, though not by Yahoo. Perhaps the sweetest deal for both parties would be the one with Microsoft. This would give Microsoft stronger standing against Google in internet search and could bring Yahoo back from also-ran to challenger status in the online advertising business. µ