THOMAS H. LEE Partners is interested in buying the US operations of Yahoo, breaking away from other bidders that are for now eyeing either a minority stake or teaming up with the internet giant’s partners in Asia, according to sources familiar with the matter.

THL is hoping to do a leveraged buyout of Yahoo’s US business – which could be worth $5 billion to $6 billion – and draw on its experience running other media assets such as Nielsen Co, Clear Channel and Univision to turn around the ailing company, the sources said yesterday.

In taking this approach, THL is charting a different path than other private equity firms such as Silver Lake, KKR and TPG, which are expected to put in bids for a stake of up to 20 per cent in the company, sources said.

Microsoft is helping to finance a possible Silver Lake investment in Yahoo, which has a market value of about $19 billion, the sources said. Yahoo’s board was due to meet to assess the possibility of a minority investment, the sources said.

Yahoo shares were trading at $156.75 in early trade in New York yesterday, valuing the firm at $19.5 billion. – (Reuters)