With growing uncertainty and falling revenues, finally, Yahoo is up for sale. Once regarded as the biggest competitor of Google, the company got a second-round bid for just $3 billion. The bid came from Verizon Communications Inc. However, it’s for Yahoo Inc’s core internet business, excluding its stake in Alibaba and Yahoo Japan. The bid also includes Yahoo’s real estate investments and its patents.
As reported by the “The Wall Street Journal“, even TPG is expected to submit its second round bid for acquiring the company. At present, Yahoo is likely to hold one more round, before proceeding with the sale.
When contacted, both Verizon and Yahoo declined to comment on the ongoing process.
Lately, the company has been struggling with the growing competition and falling advertisements. Then even the shift from desktop users to mobile users has affected its core business, which relied mainly on the former. CEO Marissa Mayer joined the company four years ago and since then Yahoo has acquired many businesses. However though they have increased their operational scale, still none of the investments have generated decent returns. Lately, Yahoo has acquired firms like Summly, Tumblr, and Flurry etc.
Last year, Version acquired AOL for $4.4 billion. So experts believe that the company is surely planning to grow its online presence. As Yahoo portal itself manages to attract more that one billion users a month. And if the deal goes as expected, then both AOL and Yahoo will come under one parent company.
Though at present the bid is for $ 3 billion still some experts suggest that the final figure may somewhat land in-between $6 billion to $ 8 billion. It would include Yahoo’s core business along with its intellectual property and real estate. The final bid for acquisition is likely to happen in July this year. The sale could take place up till November.