Verizon preparing to buy Yahoo; Google may also bid
Verizon Communications Inc. is reportedly preparing to bid for acquiring Yahoo’s core Search business as early as next week. In the first round, the telecommunications company, which has a market value of about $213 billion (about AU $282 billion) may also propose to buy Yahoo Japan Corp.
Last month, there were reports that Yahoo is looking at selling its 35.5 percent stake in Yahoo Japan Corp., worth about $8.5 billion (Au $11.26 billion) along with its Web business.
Citing its source, Bloomberg reported that Google might also consider bidding for Yahoo’s core business.
Other potential suitors for the bid include AT&T, Verizon subsidiary AOL, Google’s parent body Alphabet, Time Inc. and Microsoft.
In 2015, Verizon acquired AOL for $4.4 billion. In an interview with CNBC, Lowell McAdam, chairman and CEO of Verizon Communications confirmed that the company is indeed planning to place acquisition bids for Yahoo. If acquired, under the leadership of CEO Tim Armstrong AOL will be managing Yahoo.
Last month, there were reports that Microsoft may also help finance third-party equity firms, interested in placing acquisition bids to buy Yahoo’s core internet business.
In 2008, under the guidance of then CEO Steve Ballmerhad, the company had attempted to acquire Yahoo for $45 billion (about AU $60 billion), which did not work out. Microsoft has not yet committed to any funding.
Read: Microsoft reportedly back in talks to acquire Yahoo
Despite the turnaround plans of Yahoo CEO Merissa, Yahoo has been struggling to keep pace with its competitors. In the past 12 months, the company’s stock has declined about 20 percent.
From mid-February, Yahoo formally started the process of selling parts of its business. The company also continued wrapping up its operating businesses from Chinese internet giant, Alibaba.
With the help of a Strategic Review Committee of independent directors, the Board of Directors are exploring “strategic alternatives” and are trying to tap “potentially interested strategic and financial parties,” announced Yahoo.
