Yahoo Extends Deadline To Submit Bids
Yahoo has once again extended a deadline for potential suitors to submit their bids until April 18.
Yahoo Inc. has tried every way to revive its business and now it seems like CEO Marissa Mayer is in deep water. The board of directors, along with the CEO, tried to explore the strategic alternatives in order to turn around the fate of its dying business. The activist investor of the company, Starboard Value LP, has already clarified its demands on behalf of majority investors and shareholders that a sale process should be pursued. If the demands were not met, Starboard Value would start a proxy war against the US internet giant.
Last month, Yahoo announced the commencement of the sale process and tried to approach bidders. Microsoft started to show interest. At that time, a deal was imminent between it and Yahoo, but no update on that matter is provided afterwards. When the news about Yahoo selling its core business broke out, Verizon was said to be the most interested candidate to purchase the web and advertising business of the company. According to Bloomberg, the telecom network is all set to make a first round bid for Yahoo’s core internet and advertising business by next week.
Verizon might also include the plan to acquire its stake in Yahoo Japan Corp. in order to make its offer impressive to the board of directors and shareholders. People familiar with the matter have said that the search engine company has once again extended the deadline for bid by one week. Another person claimed that the main division of Alphabet Inc., Google, has plans to make a bid for its core web business as well.
AT&T and Comcast Corporation were also named as potential bidder but the suitors have decided to go against bidding as reported by other persons familiar to the matter. These persons asked to not be identified as the details are private. Microsoft was expected to submit a bid before first deadline. It failed with a first hostile bid for Yahoo in 2008. It will not participate again.
On the other hand, companies and a few private equity firms, which include Time Inc., Bain, TPG, and others, are also exploring options and evaluating a bid for Yahoo’s core business. The bid can be made either alone or by backing a strategic acquirer.
Yahoo decided to extend the deadline by a week for its first-round bids, to April 18. This will facilitate and provide further time to other companies to evaluate decisions.