Monday, October 13, 2008

Capital Research quietly gobbling up Yahoo! shares

Capital Research Global Investors has been buying even more stock in Yahoo!, according to a Reuters report on Friday.

Already a significant investor in the company, they have been very vocal in the company's management as pointed out in August by Kara Swisher of AllThingsDigital.

According to the Reuters report, Capital's two investment funds, Capital World Investors and Capital Research "now own 22 per cent of Yahoo! collectively".

While it's hard to speculate on the investment groups' strategy (and the 10K was unavailable as of this post), it's likely that the 'fire sale prices' last week on Yahoo stock (NASDAQ: YHOO) was part of the motivation for the increase.

With tech stock price still somewhat depressed, this is probably one of the many announcements we can expect in the coming weeks as Venture Capital and Private Equity companies begin to take stock (for lack of a better way of putting it :).