Yahoo To Approach Buyers For Its Business

yahoo bidders, yahoo business, yahoo sale process, yahoo auction

yahoo bidders, yahoo business, yahoo sale process, yahoo auction

On Friday, Yahoo Inc. made an official announcement to launch the sale of its core internet business. The CEO of the firm, Marissa Mayer, said in a meeting the company is going to have an auction process and will start looking for bidders as soon as the new week starts. The process to approach the potential corporate or equity buyers as well as bidders has begun. The sources familiar to the matter said that the Web company has shelved its previous plan to spin off its core internet business which is a fairly good option considering the circumstances.

A few tech firms which include AT&T Inc., Comcast Corp., and Verizon Communications Inc. are interest in buying out Yahoo if the deal is right. Apart from that, a few buyout firms such as Bain Capital Partners, KKR & Co., and TPG are also looking for a possible deal from the Internet firm. The people asked to not disclose or reveal their personal information as the situation is not public yet. They added that it is not likely that Yahoo receives any potential first round bids for the business until next month.

For the sale process, Yahoo has already hired financial advisers, a bank, and a law firm to help out with it. Furthermore, it also told the independent board members on Friday to seek other strategic options despite the pressure is exerted from its activist investors it is trying to transform itself and is taking various deals into consideration. The search engine giant said in a statement that the financial counsel will be provided by the likes of Goldman Sachs Group Inc., JP Morgan Chase & Co., and PJT Partners Inc.

According to Bloomberg, the representatives for AT&T, Comcast, TPG, Verizon, and of course Yahoo declined to comment on this matter. On the other hand, the representatives for Bain and KKR did not respond immediately for comments.

The CEO Marissa Mayer is in charge since 2012 and has been doing a lot to change the fate of the company. She has been focused in improving the mobile platform as well as boosting the advertising revenue. And the board of directors was satisfied with her performance and leadership thus far. But since late last year, the activist hedge fund and investor Starboard Value is pressurizing the firm indirectly to bid farewell to Ms. Mayer.

The shareholders are not content with the performance regardless of the fact that the company officials showed confidence in her. In her tenure, Ms. Mayer did improve the conditions at Yahoo but still failed to boost sales as well as separate the Asian assets, Alibaba stake of $26 billion, from its core business. Starboard warned that if it does not launch an auction process then it will take its first step towards a proxy fight with Yahoo. The people said that in order to avoid proxy fight, Yahoo has taken this decision.

The Yahoo stock has plummeted by 10% this year. This decline is right after the 34% decline observed in the last fiscal year. The stock price of each stock while closing on Friday was reported to be $30.03 which resulted in the accumulative value of the company as $28 billion.

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