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Now, Yang is interested in a deal with private equity firms that would take the $20 billion company off public markets, according to people familiar with the situation.
Such a deal would involve rolling over Yang's stake in Yahoo, which stood at 3.63 percent as of April 2. Yahoo's other co-founder, David Filo, would likely follow Yang's lead and roll over his stake, said other sources close to Yahoo. Filo held 5.90 percent of Yahoo's shares as of May 11.