Yahoo is shaping up to be an interesting deal as giants like Verizon and Google are looking into bidding. According to reports, Verizon Communication should render its first-round bid for Yahoo while Google mulls over its core business.
Verizon will be making the offer to Yahoo Inc.’s Web business next week. To sweeten the deal further, the company has also expressed its eagerness to buy the company’s Yahoo Japan Corp. stake. Information came from sources familiar with the matter, according to Bloomberg.
Alphabet Inc.’s Google, the company’s main division, has also been looking into Yahoo’s core business, according to a different source. Previously, Yahoo has also been linked to other bidders. However, this time, companies like AT&T Inc. and Comcast have already voted against bidding. Another source also claimed that Microsoft, which failed to take over Yahoo in a hostile bid in 2008, will also not partake in any deal.
Time Inc. is reportedly still thinking about making an offer. Bain and TPG, private equities as such, are also thinking of having a run either independently or by supporting a strategic acquirer.
According to reports, Verizon was already interested in Yahoo’s core business back in early December. The hint came from Chief Financial Officer Fran Shammo who said that the organization will “see if there is a strategic fit” for Yahoo, in terms of its holdings, spans areas like advertising technology, sports, news and mail. Yahoo’s core business was up for auction starting February after the company put off its plans to spin off its Alibaba’s stake. Verizon’s offer to acquire Yahoo’s 35.5 percent stake in Yahoo Japan will launch the company ahead of any potential bidders.