SAN FRANCISCO (BLOOMBERG) - Verizon Communications Inc will bid US$3 billion for Yahoo! Inc's main internet assets, the Wall Street Journal reported, seeking to edge out AT&T, TPG and other potential buyers.
The US carrier is putting in its offer during a second round of bidding due on Monday (June 14), the newspaper reported without citing named sources. Yahoo will probably hold at least one more cycle of bidding and the offers could change by the final round, the Journal reported.
While Yahoo still boasts about 1 billion users, putting it among the largest online players in the world, it has serious challenges. It has been losing ground in digital advertising to rivals such as Facebook, Google and Twitter. This year, the Web portal will capture just 1.5 per cent of the digital ad market, down from 2.1 per cent in 2015, according to eMarketer Inc. Chief executive officer Marissa Mayer started a review of the company's options in February after pressure from investors and a failed turnaround.
Last month, chief financial officer Ken Goldman said Yahoo's strategic review to sell its core business was going well and "well along the way." Yahoo wasn't immediately available for comment outside of normal US business hours.
Bidders have included TPG, Verizon, YP Holdings and a consortium led by Bain Capital and Vista Equity Partners, people familiar with the matter have said. Berkshire Hathaway chairman Warren Buffett is also backing a group bidding for Yahoo's Internet assets, people familiar with the matter have said. The company has received more than 10 initial offers ranging from about US$4 billion to US$8 billion, people familiar with the matter have said.