Yahoo Potential Buyers Have 14 Days to Present Their Bid
Anyone interested to acquire Yahoo's core business have until April 11 to submit their bid which is two weeks from now Monday, March 28. Telecom giant Verizon and publisher Time Inc. are two potential buyers who announced their interest a few months back.
Potential buyers were sent out notice asking them to enumerate which parts of the company they would like to bid for and how much they are willing to pay for it. They were also asked for information as how they are going to finance the agreement and what the internal-approval process is going to be like.
According to Business Insider, approximately 40 companies have already signed non-disclosure agreements with Yahoo to study materials regarding its business. Some of the most constantly mentioned possible buyers are private-equity firms like TPG and KKR and large communication companies such as Verizon and AT&T.
Microsoft already had talks with private-equity firms about helping to fund a buyout. The software behemoth is hoping the preservation of revenue it generates from its search partner Yahoo in the case of a third party sale, as reported by MarketWatch.
Yahoo announced its core business auction in February after it set aside plans to establish its share in the Chinese e-commerce titan Alibaba Group Holding Ltd. Last week a proxy fight was launched by Starboard Value LP which is an activist hedge fund, and possesses almost 1.7% of Yahoo, to remove Yahoo's complete board.
Telecom companies like Verizon and publisher Time Inc. have already shown interest the past months and are expected to bid for Yahoo's core business. Other private-equity firms will partner with other firms to make offers, reports MoneyControl.
Yahoo's market capitalization is about $33 billion but is greatly down to the value of its shares in Chinese e-commerce titan Alibaba and Yahoo Japan. The core business is valued between $6 billion to $8 billion due to its struggle for online competition and mobile advertising against Google and Facebook. Yahoo reportedly asked for $10 billion for its core business.