Verizon to Submit $3bn Bid for Yahoo
- Tuesday, June 7th, 2016
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Verizon is preparing to submit a second-round bid of around $3bn (£2bn) for Yahoos core internet business, with private equity firm TPG also expected to submit a second-round bid before the deadline next Monday.
According to the Wall Street Journal, which cited people familiar with the matter, Yahoo is expected to hold a least one more round of bidding before deciding on whether or not to sell its core internet business, and offers could change again before a final sale is made.
Verizon has reportedly added Bank of America to its roster of investment banks who are willing to back its bid, in a move to elevate its pitch for Yahoo and gain an edge over the other bidders making a play for the internet firms assets.
Yahoo has been accepting bids on its core business since late March, eliminating several other bidders down to a pool of around four remaining firms. Initially, Yahoos core business was thought to be worth somewhere in the region of $8bn, but last month that figure was revised down dramatically to around $3bn.
Verizon is currently the industry favourite to pick up the once-dominant internet firm, but much could change in the next few months as the final bids are considered by Marissa Mayer and her board. Whoever does succeed in buying Yahoo, it will be fascinating to see how they put its considerable assets to work.