Microsoft tells potential Yahoo bidders it might help finance a deal

Microsoft and Yahoo sale financing

Microsoft executives are discussing a possible finance vehicle for several equity firms who might be interested in purchasing Yahoo!

Several people close to those talks say Microsoft is offering “significant financing” for their efforts, tech news site Recode reported on Thursday.

Microsoft hasn’t had any commitments for investors at this time, and any discussions are exploratory, Recode reported.

It’s likely an attempt to ensure a good relationship with Yahoo’s future buyer.

Yahoo is under pressure from Starboard Value LP to reach a sale or replace its entire board of directors. Starboard owns about 1.7% of outstanding Yahoo shares.

Shareholder activists are fighting for Yahoo to sell its core business instead of going through a spinoff that would separate the company from its multibillion-dollar stakes in Yahoo Japan and Alibaba Group.

Microsoft’s partnerships and acquisition strategy head Peggy Johnson is also part of the effort to finance a possible Yahoo buyer, Recode said.

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Microsoft issued a hostile bid to buy Yahoo in 2008. The company has since said it has no interest in acquiring the struggling tech firm.

Yahoo and Microsoft declined to comment on current rumors.