News: Yahoo will likely hold at least one more cycle of bidding.
Verizon Communications is reportedly set to offer $3bn for Yahoo’s core internet business.
Citing people familiar with the matter, the Wall Street Journal (WSJ) reported that the US telecoms firm appears to be the leading bidder, with Yahoo probably set to hold at least one more cycle of bidding.
Verizon has shown interest in acquiring Yahoo’s core business since December last year.
Yahoo, which still has nearly 1 billion users, has been losing revenue in digital advertising to rivals Twitter, Facebook and Google.
Verizon plans to merge Yahoo with AOL, which it acquired for $4.4bn in 2015, to establish a digital advertising group.
According to people familiar with the matter, Yahoo received over 10 initial offers. Bidders other than Verizon included TPG, YP Holdings, and a consortium led by Bain Capital and Vista Equity Partners.
Berkshire Hathaway chairman Warren Buffett is also supporting a consortium bidding for Yahoo’s internet assets.
According to the WSJ, Yahoo’s core business auction is anticipated to draw bids of between $2bn to $3bn, versus earlier expectations for $4bn to $8bn.
Verizon is reportedly not interested in buying several Yahoo assets, like patents and real estate, as part of the agreement.
Earlier this year, Yahoo said it is exploring the sale of up to $3bn worth of patents, property and other non-core assets.
The company sold or licensed more than $600m in patents over the past three years.
Yahoo posted a loss of $99m for the first quarter of this year after a sharp drop in net revenue.
A strategic review committee of independent directors has been established to identify alternatives for the company alongside its continued consideration of a reverse spin.