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Yahoo Japan Talking Buyout With Yahoo

Confirming what many expected, Yahoo Japan this week confirmed ongoing talks with its U.S. counterpart regarding the acquisition of outstanding assets. "Yahoo Inc. is still trying to finalize the mechanism (for selling its stake in Yahoo Japan) and we are cooperating with them," Akira Kajikawa, Yahoo Japan's chief financial officer, said at a news conference Wednesday, as reported by The Wall Street Journal.

A key issue, according to WSJ, is the high tax penalty associated with Yahoo selling its stake in the Japanese company, which is reportedly valued at about $6 billion. “Yahoo Inc. is considering a complex asset swap for its Asian assets that could save the Sunnyvale, Calif., company up to $4 billion in taxes,” reports WSJ, citing sources.

On Wednesday, Kajikawa said it was unclear when an agreement might be reached, while noting: "It's a very complex deal.” According to Kajikawa, Yahoo Inc. has been exploring way to sell the stake for about a year, following pressure from regulators. Yahoo Inc. currently owns nearly 35% of Yahoo Japan, while Japanese mobile and Internet-service company Softbank owns 42%.

 

Read the whole story at The Wall Street Journal »

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