Friday, July 22, 2016

Verizon is close to Acquiring Yahoo

CEO Marissa Mayer

Bids for Yahoo which is headed by CEO Marissa Mayer, were due on Monday, and expert says that Verizon has long been the front-runner.

On a report on Bloomberg News, it said that Verizon is nearing a deal to buy the core business of internet company Yahoo. Verizon is negotiating the amount that they will pay which is close to $5 billion for Yahoo’s core internet business after emerging as the lead suitor in the final round of bidding. While some people said that that Yahoo worth as much as $10 billion for its core business (excludes its stake in Alibaba and Yahoo Japan) bids so far came in below that.

Among those believed to also have submitted final bids for Yahoo were telecom giant AT&T, Dan Gilbert, the founder of Quicken Loans and owner of the Cleveland Cavaliers NBA team, supported by Warren Buffett's Berkshire Hathaway. Private equity firm TPG has also been among the suitors that were in the final final round.

Verizon is due to report earnings next week on Tuesday, July 26, so that’s a logical day for the news to come out. When Verizon executive were asked for comment on reports about this possibility of the deal, all they say is “watch this space”.

“No comment at this time,” Caroline Campbell, SVP of brand and communications at AOL, said in an emailed response.

Later, a report from Recode noted that Verizon, which had originally thought to be offering around $3 billion for core assets, might have bumped its figure up to about $5 billion.

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