Private-equity firms such as Blackstone Group and KKR are considering a takeover bid for Yahoo

Private-equity firms such as Blackstone and KKR are considering a takeover offer for Yahoo, according to foreign media sources.

The two companies may join a consortium to raise funds for the takeover, sources said.

Yahoo fired CEO Bartz Carol Bartz last month and began a strategic assessment of available options, prompting many potential bidders to flock. Under Bartz's leadership, Yahoo has been unable to stop the trend of sales decline and to compete vigorously with Google and Facebook. Industry analysts point out that any potential bidders will likely need to work with Alibaba Group, Yahoo is the group's largest shareholder.

Multi-party inquiry

Previous sources said Alibaba Group had discussed plans to jointly buy Yahoo with the Silver Lake and Russian investment company DST. In addition, a consortium of investors, such as Providence Providence Equity, a private-equity firm, and former News Corp Pitt Chernin (Peter Chernin), also intends to launch an offer for Yahoo.

Yahoo's consultants have received inquiries from "multiple parties", according to a September employee memo from Yahoo, and the Silver Lake Consortium and the Providence consortium are the most likely bidders. Alibaba Group and private equity funds will also participate in the takeover, sources said.

Yahoo spokeswoman Danna Lenkick Dana Lengkeek, Blackstone Group spokesman Christian Anderson Christine Anderson and KKR spokesman Christie Hoole (Kristi Huller) declined to comment on the news.

Acquisitions are not easy

Industry insiders point out that the acquisition of Yahoo is not easy. In addition to the need to raise the money needed to buy a company worth about $20 billion trillion, bidders must also deal with tax liabilities related to Yahoo's overseas assets, according to sources familiar with the story. In addition to holding shares in Alibaba Group, Yahoo also has a stake in Yahoo Japan through its joint venture with SoftBank.

The source said SoftBank and Yahoo Japan had begun negotiations with Yahoo 9 months ago to buy Yahoo's stake in Yahoo Japan, but the tax issue has complicated the negotiations.

Microsoft won't buy it alone

A source said this week that Microsoft could join an investor group to protect the company's interests in Yahoo and fill the gap in the money generated by leveraged buy-out exchanges. Last week, it was reported that Microsoft would not launch an offer to buy Yahoo alone.

Yahoo rejected Microsoft's 47.5 billion dollar takeover offer in 2008, which made investors feel resentful. Since then, two companies have reached a 10-year agreement to outsource Yahoo's search engine to Microsoft, reducing the likelihood of Microsoft acquiring Yahoo outright.

Jack Ma, the chairman of Alibaba Group, said he was "very interested" in acquiring Yahoo. Yahoo now holds about 40% per cent of Alibaba Group.

Sources said Alibaba Group is also in talks with Temasek Holdings, which provides funds to help the group buy back its stake in Yahoo.