Cherchez la search firm

A group of well-known — but unnamed — Silicon Valley executives and investment bankers are brokering a deal to take over Yahoo, TechCrunch claims.

The investors are expected to offer $20 billion for the struggling internet company, a 20% premium on its $13-per-share value — less than half the original price Microsoft offered Yahoo in February '08.

In an odd twist, Microsoft, which attested in November to disinterest in attempting another Yahoo buyout, is allegedly supplying the bulk of the funding. If the buyers succeed in acquiring the company, Microsoft will receive a fixed return on the debt tied to Yahoo's future profits — a stream that remains surprisingly fertile, given its struggles and the economic climate.

Microsoft will also inherit the rival's search business, which it offered to purchase after Yahoo rebuffed its takeover bid in June.

In the past, the software giant "scoffed" at the notion of helping others buy Yahoo to get its search business, arguing it could "deal directly with Yahoo," and when the time is right, "deal with their leadership" too, a source told All Things Digital. "Getting involved in some convoluted deal with others in control … it's idiotic," the source added.

But that is exactly the scenario proposed here. The exec-and-investor team hoping to purchase Yahoo this time around aspires to take over the top ranks and flush the current management — with a satisfying kickback to Microsoft.

Last year, amid a power struggle between Yahoo's board and Microsoft, Yahoo lost an inordinate amount of executives and employees. In November, CEO Jerry Yang called it quits.

Prior to his departure, Yang admitted a humbled Yahoo is again open to acquisition offers.

Despite this admission, company sources commenting on this news maintain a tone of self-righteousness about Yahoo's right to choose a new leader. "I guess anyone can make a bid for the company," said one, "but actually doing it is another thing."

One oft-noted critique of Yahoo's current management is how it managed the Microsoft takeover bid. Yahoo repeatedly stated it refused the offer for the shareholders' sakes. Meanwhile, a disgruntled subset of shareholders tried suing the search firm for putting personal feelings before profit. (It was often insinuated that Jerry Yang held a personal bias against Microsoft, which colored his perspective and ultimately affected the board's decision.)