Yahoo Said to Lean Toward Dividend, Buyback Rather Than Sale

Yahoo! Inc. is leaning toward selling its Asian assets and redistributing the proceeds to shareholders, rather than selling itself to a group of buyers, according to five people familiar with the situation.

This scenario is emerging as the most likely option for Yahoo and would let the company eventually pay a special dividend or buy back shares, said the people, who declined to be identified because the talks are private. The stock has surged 28 percent since the company fired Chief Executive Officer Carol Bartz in early September, making it a more expensive target for private-equity buyers, the people said.