Yahoo Eyes Softbank Joint Venture Exit

Yahoo is in advanced talks to exit its joint venture in Japan with Softbank and a deal to transfer its 35 percent stake in Yahoo Japan could come within a few weeks.

People with knowledge of the discussions said a straightforward sale is unlikely for tax reasons and the parties are exploring other structures.

The public value of the stake is just under $7.5 billion, but both Softbank and Yahoo declined to comment on discussions.

Shares of Yahoo Japan rose 8 percent and Softbank shares fell as much as 4 percent in Japan on Wednesday.

Talks come as Yahoo Chief Executive Carol Bartz is under pressure to turn around the once mighty Internet company that has fallen behind in prominence and growth to Google and Facebook.

Resolving the future of Yahoo’s stake in Yahoo Japan would be a tidy resolution to a long-term partnership with Softbank established with Yahoo co-founder Jerry Yang in 1996.

Son, an outspoken technology entrepreneur, has openly attacked Yahoo’s track record as an innovator and its approach to international markets.

The relationship between Son and Yahoo’s Bartz frayed after Yahoo Japan replaced its search advertising partner with Google last year.

Foto: NTDTV