Yahoo hopes to get up to $500 million for a unit that hosts websites for small companies, after putting it on the market for several months, two people familiar with the matter said.
Yahoo has received interest from corporate buyers and private equity firms, one of the sources familiar with the situation said. It is unclear if any party has made an offer.
But some potential corporate buyers who have looked at the asset in recent months have decided not to bid because they think the price is too high, a second source said.
Last week, Yahoo sold its stake in China's top e-commerce company Alibaba.com for $150 million.
The sources spoke on condition of anonymity because the sale process has not been made public. A Yahoo spokeswoman said the company does not comment on rumors or speculation.
The small business division provides domains, email, Web hosting and other merchant services to customers. Sunnyvale, California-based Yahoo, which posted $7.2 billion in revenue last year, does not break out the unit's performance.
Yahoo prefers to sell to another company rather than a buyout shop, believing that a strategic buyer would be more likely to pay a higher multiple for the synergies that the unit has with its own business, the sources said.
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