Yahoo may sell to Verizon early next week: reports

Yahoo’s sale of core assets could come within days, with Verizon the leading contender and the two companies discussing a price of $5 billion, reports based on anonymous sources suggest.

A deal would cap months of speculation – and would also be a bad deal for the buyer, according to a prominent former Wall Street Journal reporter.

Verizon, if it buys Yahoo, would acquire Yahoo real estate but not its patents, CNBC reported Friday. “The advisors overseeing the Yahoo sale are now dealing solely with Verizon, and are close to a potential deal in the negotiations,” according to CNBC.

Troubled Yahoo, which put itself up for sale in February, and telecommunications giant Verizon have been talking about a $5 billion purchase price, Bloomberg reported, citing one unnamed source.

Verizon this week had boosted its offer to around $5 billion, Recode reported. “But some members of Verizon’s board had previously expressed concern about the deal’s price tag and were worried about other costs,” according to Recode. “That includes the revelation that search partner Mozilla had been given advantageous and pricey termination terms in a deal struck by Yahoo CEO Marissa Mayer.”

Meanwhile, a former Wall Street Journal reporter and editor-in-chief of The Information on Friday wrote a column offering advice to Yahoo bidders: “Back out.” A future decline in cash flow from falling usage of Yahoo products, plus shrinking Yahoo revenue over six of the past seven quarters, and the impossibility of growing a revenue-deficient internet business through cutting jobs make Yahoo a bad bet for a buyer, including Verizon, Jessica Lessin argued (paywalled).

Other reported bidders for Yahoo include AT&T, private equity firm TPG Capital, and Quicken Loans co-founder Dan Gilbert backed by Warren Buffett.

 

Photo: Yahoo CEO Marissa Mayer delivers the keynote address Thursday, Feb. 18, 2016, at the Yahoo Mobile Developer Conference in San Francisco. (AP Photo/Eric Risberg)

 

Tags: , , , , , , , ,

 

Share this Post



 
 
 
 
 
css.php