The Daily Mail Is Exploring A Bid For Yahoo

1619 0
Advertisement

According to the Wall Street Journal, The Daily Mail and General Trust PLC, which is the parent company of the British newspaper, is considering making a bid for Yahoo. Apparently the company is in discussions with a number of private equity companies to rallying some backing for their bid. The deadline for bids for the core business has been set by Yahoo as next Monday.

Yahoo

Advertisement



The Wall Street Journal believes that the newspapers bid could take on two different scenarios. The first would see a private equity partner aiming to acquire Yahoo’s core web business in its entirety with the Daily Mail then taking over the media and news properties. Alternatively, the private-equity firm would acquire the core web business and then merge the media and news elements with the current Daily Mail’s online business, the merger would then be incorporated into a new company that would be run by the Daily Mail and the core web business that Yahoo has would be merged with the news and media properties to form one online operation. The new company would be run by the Mail and allow for a much larger equity stake to the Daily Mail’s parent company than would be available in the first scenario.

The Daily Mail is not the only company that are supposedly in the running. Verizon is expected to place a bid, and according to a report by Bloomberg, Google is also thinking about submitting a bid. The Bloomberg report suggests that Verizon would make an offer for the core internet business of Yahoo including its holding in Yahoo Japan, it has also been suggested that Verizon sees the core business to be valued at less than $8 billion. Apart from Google, Time the magazine publisher, and Bain and TPG the private-equity funds are all also interested in submitting bids.

Whilst Marissa Mayer the CEO of Yahoo has made a valiant effort over the past three years to turn things around her efforts have gained little momentum and Yahoo is still struggling. Yahoo put its core internet business up for sale due to pressure from investors stating that they expected significant changes.

Advertisement