May 2, 2016
For more Bay Area CRE transactions, attend Connect San Francisco on May 12th at The Hibernia Bank.
Amid its major job cuts, Yahoo is looking to sell its non-core assets to generate cash flow. According to news sources, Yahoo is selling its 48.6-acre undeveloped site to LeEco, a Chinese tech firm that’s known as the “Netflix of China.” The massive site is only four miles away from Yahoo’s headquarters in Sunnyvale, CA.
In 2006, Yahoo paid $106 million for the land, which was seen as having the potential to accommodate 12,000 workers. Although the web giant received approval to build 13 buildings and up to 3 million square feet on the site for office or research and development, construction never kicked off.
The deal has not closed, but if it does, it will provide LeEco, who develops phones, TVs, and mountain bikes, a large plot of land for its growth plans. LeEco is looking to make electric cars as well, and is reportedly funding Faraday Future, the electric-car startup.