Verizon Still Wants to Buy Yahoo, Bid to Come Next Week: Report
Another possible buyer for Yahoo's core business is Google, while other potential bidders have apparently decided to step aside.Verizon remains very interested in acquiring Yahoo's Web business as an April 11 first-round bid deadline approaches, while other potential bidders, including AT&T and Comcast, have apparently dropped out of the competition for the company. Google, at the same time, could be interested in bidding for Yahoo's core business as well, according to an April 7 story by Bloomberg, which is based on unnamed sources familiar with the matter. Verizon is "willing to acquire the company's Yahoo Japan Corp. stake to help sweeten the offer," article said. "Microsoft Corp., which failed with a hostile bid for Yahoo in 2008, won't bid this time, another person said." Other companies are also still eyeing a potential bid, Bloomberg reported, including Time Inc. and private equity funds Bain and others, "either alone or by backing a strategic acquirer." In February, reports indicated that Tim Armstrong, CEO of AOL, which Verizon owns, was leading Verizon's interest in exploring a possible bid for Yahoo, according to an earlier eWEEK story. Verizon's fascination with Yahoo centers on the 1 billion people who use its email, finance, sports and video services; its broad online content offerings and its heavy Web traffic. The wireless carrier, which already has about 112 million subscribers, would like to pair the businesses to grow its audience for a wide range of services that it offers.
Yahoo has been having a tough time in recent years. Earlier in February, Yahoo announced that it is cutting about 1,700 workers, or about 15 percent of its workforce of 11,000 full-time employees, as it works to scale back its operations and business units to cut costs, according to an earlier eWEEK article.