Canada Pension Plan to invest Skype windfall into Yahoo!?

According to the Wall Street Journal the Canada Pension Plan Investment Board (CPPIB) is working with private-equity firm Silver Lake Partners and Microsoft to put together a proposal to buy Yahoo!.

Under the proposal being discussed, Microsoft would put up the brunt of the $20+ billion dollar offer with Silver Lake and the CPPIB kicking in the remainder.

Some private-equity firms expect a deal for Yahoo! can be done around $16 to $18 per share – the company’s shares closed today at $16.12 on the NASDAQ giving it a market capitalization of $20 Billion.

Silver Lake and the CPPIB were co-investors in Skype, the Internet telephony company that Microsoft bought earlier this year for $8.5 billion. Based on the reported purchase price, the CPPIB’s stake in Skype was worth $828 million – a $528 Million profit on a 20-month investment.

CPPIB had about $150 billion in assets under management as of June 30th.