Verizon And Google Rumored To Be Preparing Bids For Yahoo


According to a recent report, Verizon and Google are said to be preparing to make a first-round bid for Yahoo next week. As reported by Bloomberg, both Verizon and its AOL subsidiary are said to be in talks with three separate financial institutions about the bid.

Verizon Communications Inc. plans to make a first-round bid for Yahoo Inc.’s Web business next week, and is willing to acquire the company’s Yahoo Japan Corp. stake to help sweeten the offer, according to people familiar with the matter.

Verizon and its subsidiary AOL Inc. are working with at least three financial advisers on the Yahoo bid, said three of the people. Hiring so many banks is a sign that Verizon is serious about its takeover plans — it has said since late last year that it was interested in buying some or all of Yahoo. If the Verizon wins Yahoo, insiders’ claims that it would replace Yahoo Chief Executive Officer Marissa Mayer with AOL CEO Tim Armstrong and Marni Walden.

In addition, it is also believed Google’s parent company Alphabet Inc., is also considering bidding for Yahoo’s core business. Previously it is said that AT&T Inc. and Comcast were interested in making a bid for the beleaguered company, but have decided against bidding.

Microsoft who tried to buy Yahoo in 2008 but failed will not bid this time. However, it may try to provide support and provide token investment to create goodwill with those who are interested in Yahoo to protect their revenue stream, as the company has advertising and search deals with Yahoo.

Time, Inc. is still mulling over a potential purchase as well, while private equity funds Bain and TPG, among others, are also planning to make a run at the business, either alone or by backing a strategic acquirer.

Yahoo is in trouble for some time and analysts projected revenue will drop almost 15 percent and earnings by more than 20 percent for 2016. The company’s stock has also declined about 20 percent in the past 12 months as turnaround efforts led by CEO Marissa Mayer stalled and sales have sagged, leaving the company vulnerable to activist investors.


Raja Rajan

Raja is obsessed with technology and Cricket for as long as he can remember. Nowadays he work as a freelance developer and writer for

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2 Responses

  1. Hanumantha says:

    are they planning to acquire entire yahoo business???