Yahoo to narrow field of bidders as soon as next week

First-round bidders for Yahoo! Inc. could find out as early as next week whether they’ve made it through to the next stage. Yahoo’s advisers will spend the weekend narrowing down the field of bidders after receiving more than 10 initial offers for the Internet company ranging from about $4 billion to $8 billion, according to people with knowledge of the matter. Several first-round bidders will be eliminated to slim down the group, the people said, asking not to be identified because the process is private. After culling the list to a handful of the most plausible buyers, Yahoo will give them increased access to internal documents and management, one of the people said. A decision on a winner is probably at least a month away, the people said. Yahoo Chief Executive Officer Marissa Mayer said on an earnings call with analysts Tuesday that the company is moving swiftly to consider offers for its Web operations and that efforts “reflect clear, decisive action to move forward quickly and in a way that we believe will yield enhanced value.” Higher Bids Yahoo and its advisers are already speaking with bidders to glean more information about the structure of the various offers, and to get a sense for how much analysis they’ve already done on the deal. Some of the higher bids -- towards the $8 billion end of the range -- came from companies or private equity firms that haven’t spent as much time with Yahoo, one of the people said. Bidders include Verizon Communications Corp., YP Holdings LLC, TPG, and a consortium led by Bain Capital LP and Vista Equity Partners LLC, people familiar with the matter said earlier this week. At least one or two other strategic firms, as opposed to private equity funds, also bid, one of the people said Friday. SoftBank Corp. doesn’t have interest in buying Yahoo’s core Internet business but will have discussions with any buyer that wants to also acquire the Yahoo Japan Corp. stake, according to people familiar with the matter. SoftBank and Verizon have already had preliminary discussions about Yahoo Japan, two of the people said. The conversations have addressed two scenarios -- SoftBank buying back the stake and Verizon keeping it, the people said. Verizon is attempting to get a waiver from Yahoo to restart conversations over Yahoo Japan with SoftBank, the people said. Representatives for Yahoo, Verizon and SoftBank declined to comment. Companies that bid on Yahoo haven’t been allowed to speak to other potential buyers given the terms of the non-disclosure agreements they signed. (By Alex Sherman/Bloomberg, with assistance from Brian Womack, Scott Moritz and Christopher Palmeri)

More from Business

  • Dubai's GDP reaches AED 339b in first nine months of 2024

    Dubai's Gross Domestic Product (GDP) grew by 3.1 per cent in the first nine months of 2024, compared to the same period in 2023, reaching AED 339.4 billion.

  • DP World’s container handling hits record high in 2024

    DP World’s ports and terminals handled a record 88.3 million twenty-foot equivalent units (TEUs) in 2024, up 8.3 per cent year-on-year despite macroeconomic headwinds and concerns over the outlook for global trade.

  • TECOM reports AED1.2 billion net profit

    TECOM Group PJSC on Thursday announced a record AED2.4 billion in revenue, representing an 11 per cent year-on-year (YoY) increase, resulting in a 14 per cent YoY increase in net profit to AED1.2 billion for the financial year ending December 31, 2024 (FY 2024).

  • UAE launches ‘Green Intellectual Property’ roadmap

    The UAE Ministry of Economy launched a roadmap on Thursday for "Green Intellectual Property (IP)" designed to foster innovation, accelerate technology localisation, and develop new projects in the new economy, environmental sustainability, and circular economy.

  • Ex-UK PM Tony Blair to speak at WGS

    Former UK Prime Minister Tony Blair will join world leaders and leading figureheads from global organisations as part of an expanded World Governments Summit, set to take place in Dubai from February 11-13.