Term Sheet

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Yahoo's Bostock: Staying public

January 5, 2012: 10:07 AM ET

Yesterday we reported that Yahoo's board had privately told several private equity suitors that the company wasn't interested in being acquired:

Today's private equity firms are loathe to attempt hostile takeovers, meaning that board opposition could be a deal-breaker. They also like to install their own CEOs, and it's unlikely that Thompson would accept the job without some assurances that he wouldn't soon be shown the door by a new owner.

During a subsequent conference call announcing the hiring of new CEO Scott Thompson, Yahoo board member Roy Bostock broadcast the message more broadly: "I do not envision not being a public company going forward. I think we'd have one hell of a challenge [going private]. We are a public company, we expect to run it as a public company going forward. It is kind of a moot issue going forward."

Given that private equity firms were expected to offer a substantial premium, it's probably not surprising that Yahoo's shares have dipped around 5% over the past day.

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Dan Primack
Dan Primack
Senior Editor, Fortune

Dan Primack joined Fortune.com in September 2010 to cover deals and dealmakers, from Wall Street to Sand Hill Road. Previously, Dan was an editor-at-large with Thomson Reuters, where he launched both peHUB.com and the peHUB Wire email service. In a past journalistic life, Dan ran a community paper in Roxbury, Massachusetts. He currently lives just outside of Boston.

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