As a measure to sweeten its offer for a first-round bid for Yahoo Inc.’s Web business next week, Verizon Communications Inc. is willing to acquire the company’s Yahoo Japan Corp. stake, reported Bloomberg quoting sources who were conversant with the matter.
A second source told Bloomberg that a possible competitor for Verizon Communications Inc in the bid could be Google, the main division of Alphabet Inc., which is also considering bidding for Yahoo’s core business.
Bloomberg report said that potential suitors AT&T Inc. and Comcast have decided against bidding. The report also said that Microsoft Corp., which failed with a hostile bid for Yahoo in 2008, won’t bid this time.
While private equity funds Bain and TPG -- among others -- are also planning to make a run at the business, Time Inc. is still evaluating a bid. Sources said that Bain and TPG could bid either alone or by backing a strategic acquirer.
There were reports last week that April 11 is eh date for the first-round bids for the company’s main Web assets.
There were also reports in the media that services of at least three financial advisers on the Yahoo bid were being utilized by Verizon and its subsidiary AOL Inc. Verizon has said since late last year that it was interested in buying some or all of Yahoo and the hiring of so many banks is a sign that Verizon is serious about its takeover plans.
One sources said that the Yahoo Japan stake could be given by Verizon – with a market value of about $213 billion, to its shareholders or sell it.
Bloomberg reported last month that along with its core business, Sunnyvale, California-based Yahoo would prefer to sell its 35.5 percent stake in Yahoo Japan, worth about $8.5 billion.
Private equity firms would find it difficult to finance a bid for both parts due to the valuation of the combined assets.
There were no comments to the media from representatives for Yahoo, AT&T, Comcast, Time, TPG and Verizon and Bain and Google.
Verizon values Yahoo’s core business at less than $8 billion o the basis of the financial information that it’s seen. Sources said that last month there were talks between Verizon, as well as some private equity firms and Microsoft.
Sources said that Microsoft is unlikely to provide anything more than a token investment to the winning bidder as the company hasn’t committed any funding yet.
Re/code reported that according to a slide deck it released to potential bidders, Yahoo’s projected revenue will drop almost 15 percent and earnings by more than 20 percent for 2016.
Earlier this year after scrapping a long-time plan to spin off its valuable Asian assets, Yahoo said it would explore strategic alternatives, including selling its main Internet operations. The company has been left vulnerable to activist investors as turnaround efforts led by CEO Mayer stalled and sales have sagged even as the company’s stock has declined about 20 percent in the past 12 months.
(Source:www.bloomberg.com)
A second source told Bloomberg that a possible competitor for Verizon Communications Inc in the bid could be Google, the main division of Alphabet Inc., which is also considering bidding for Yahoo’s core business.
Bloomberg report said that potential suitors AT&T Inc. and Comcast have decided against bidding. The report also said that Microsoft Corp., which failed with a hostile bid for Yahoo in 2008, won’t bid this time.
While private equity funds Bain and TPG -- among others -- are also planning to make a run at the business, Time Inc. is still evaluating a bid. Sources said that Bain and TPG could bid either alone or by backing a strategic acquirer.
There were reports last week that April 11 is eh date for the first-round bids for the company’s main Web assets.
There were also reports in the media that services of at least three financial advisers on the Yahoo bid were being utilized by Verizon and its subsidiary AOL Inc. Verizon has said since late last year that it was interested in buying some or all of Yahoo and the hiring of so many banks is a sign that Verizon is serious about its takeover plans.
One sources said that the Yahoo Japan stake could be given by Verizon – with a market value of about $213 billion, to its shareholders or sell it.
Bloomberg reported last month that along with its core business, Sunnyvale, California-based Yahoo would prefer to sell its 35.5 percent stake in Yahoo Japan, worth about $8.5 billion.
Private equity firms would find it difficult to finance a bid for both parts due to the valuation of the combined assets.
There were no comments to the media from representatives for Yahoo, AT&T, Comcast, Time, TPG and Verizon and Bain and Google.
Verizon values Yahoo’s core business at less than $8 billion o the basis of the financial information that it’s seen. Sources said that last month there were talks between Verizon, as well as some private equity firms and Microsoft.
Sources said that Microsoft is unlikely to provide anything more than a token investment to the winning bidder as the company hasn’t committed any funding yet.
Re/code reported that according to a slide deck it released to potential bidders, Yahoo’s projected revenue will drop almost 15 percent and earnings by more than 20 percent for 2016.
Earlier this year after scrapping a long-time plan to spin off its valuable Asian assets, Yahoo said it would explore strategic alternatives, including selling its main Internet operations. The company has been left vulnerable to activist investors as turnaround efforts led by CEO Mayer stalled and sales have sagged even as the company’s stock has declined about 20 percent in the past 12 months.
(Source:www.bloomberg.com)
