If at first you don't succeed, skydiving really isn't your sport.
Management is trying to squeeze a few more dollars per share of price premium before putting quill to parchment. Bidders are said to include Microsoft
That's like stripping your own car for parts so you don't miss the next car payment. That Alibaba holding is often seen as the best -- perhaps the only -- reason to buy into Yahoo! in the first place. Take that away, and the company would be forced to succeed on its own terms. That hasn't happened in the past few years, and the company currently doesn't even have its next CEO.
Maybe those 20% placement deals could fix that deficiency by installing a partner-picked CEO as part of the deal. But I don't know who would fit this bill at Mr. Softy's house, and alleged bidder TPG Capital has more expertise in retail and energy operations than in online business.
Silver Lake Partners, on the other hand, is an existing stakeholder in Alibaba and could turn that other asset sale on its head. The firm also holds significant stakes in Internet ventures such as Groupon
That would then force Yahoo! to find another endgame after that incubation stage, and there are no guarantees that any of this would pay off.
The way I see it, Yahoo! would be better off finding a proven online innovator that actually executes on its strategies and that could marry Big Y's enormous user list with its own business plan. Google
But that's not what's happening here. The board and interim management handle this dealmaking process more like bumper cars than skydiving. Will the company bump and grind its way back to health, or will investors be caught 13,000 feet above the cold, hard ground without a ripcord? Click here to add Yahoo! to your Foolish watchlist, and you'll be the first to know what happens in the last chapter.
Fool contributor Anders Bylund owns shares of Google but holds no other position in any of the companies mentioned. The Motley Fool owns shares of Yahoo!, Google, and Microsoft. Motley Fool newsletter services have recommended buying shares of Yahoo!, Microsoft, eBay, Amazon, and Google. We have also recommended creating a bull call spread position in Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Check out Anders' holdings and bio, or follow him on Twitter and Google+. We have a disclosure policy.