Bids to buy Yahoo are due today, Verizon is the favorite [Report]
Many of the big names mentioned have dropped out, including Time, Google, Comcast, AT&T and IAC Corp.
Just like your taxes, bids for the potential acquisition of Yahoo are due today. Wireless carrier Verizon reportedly has the inside track and is facing less competition than anticipated because many high-profile suitors that earlier expressed interest have dropped out.
At one time, numerous companies were interested in bidding for some or all of Yahoo. But many have recently decided not to proceed, out of concern, according to the The Wall Street Journal, for the health of Yahoo’s core business. Those include Time, Google, Comcast, AT&T and IAC.
Yet Yahoo remains a significant consumer brand and the third-largest company on the internet by audience reach, according to comScore.
Verizon’s rationale for buying Yahoo is similar to its reasons for buying AOL last year for more than $4 billion. If successful, it would combine the digital media assets into a consumer-advertiser powerhouse and help transform the Verizon business. Ownership of Yahoo and AOL would also set Verizon apart from chief rival AT&T.
Verizon is the largest mobile carrier in the US, with 112 million wireless subscribers. The company’s 2015 revenues were $132 billion.
The WSJ says the main competition for Verizon now comes almost exclusively from private equity firms such as Bain Capital, TPG and Advent International. The Daily Mail, also aligned with private equity, is reportedly still in the hunt.
The final acquisition price, according to analyst estimates, will probably fall between $4 billion and $8 billion, depending on the number of bidders. A successful acquisition will also probably mean the exit of current Yahoo CEO Marissa Mayer.