Yahoo (NASDAQ: YHOO) has made its way onto the radar of private equity investors. Silver Lake Partners is reportedly one of many eyeing the internet giant, but another future option for the company is a reverse merger by AOL (NYSE: AOL). Yahoo has reportedly retained Goldman Sachs for the process. With a current market cap in excess of $20 billion, a Yahoo buyout is too large of a deal for PE investors to swallow, but if Yahoo divests some of its assets, like its Asian investments, it would put it at a valuation of around $10 billion and maybe within the grasp of a PE consortium.
128 Information Technology companies have been involved in PE deals since the beginning of the year, according to the PitchBook Platform. With 115 deals completed and 14 announced but still in play, 2010 is just slightly lagging behind 2009, which closed out the year with 166 deals. During 3Q 2010, the tech sector leaped to the third largest industry for PE investment, up from fifth for the first half of this year. The Software sector continues to attract the most deals with 50.4% of the total IT deal flow in 2010 YTD, up 3.7% from 2009. Since the beginning of 2009, 209 PE investors have completed IT deals, the most active including Thoma Bravo (12 deals), Marlin Equity Partners (9), Battery Ventures (7) and The Carlyle Group (7).