Ailing Internet company Yahoo is reportedly sorting through more than 10 offers received during the first round of bidding for its core web business.
According to Bloomberg, the initial bids – submitted early last week by companies including Verizon and YP Holdings LLC and equity firms TPG, Bain Capital LP and Vista Equity Partners – range from $4 billion to $8 billion. Bloomberg reported some of the bids at the top of the range were submitted by those companies and firms who have spent less time familiarizing themselves with Yahoo.
Yahoo is currently reviewing the bids to assess the details of the different offers and narrow down the field of contenders to the most plausible players, the report said.
Those selected to move on to the next round will gain further access to internal company documents and executives, Bloomberg reported. The winner likely won’t be chosen for at least a month, the report said.
One company that won’t be among the finalists is SoftBank, which reportedly isn’t interested in purchasing Yahoo’s web business. According to Bloomberg, SoftBank will instead have discussions with Yahoo buyers who also aim to acquire the company’s Yahoo Japan Corp. stake. SoftBank has already started one such discussion with Verizon, Bloomberg reported.
The bid news follows a gloomy earnings report from Yahoo last week that revealed the company’s net revenue fell 18 percent year-over-year to just $859 million. The company said it is expecting a net revenue drop if 20 percent in the next quarter.
During Yahoo’s earnings call, CEO Marissa Mayer said the sales negotiations are a “top priority” for the company. Though she didn’t provide a specific timetable, Mayer said the board is moving on an “aggressive calendar” to complete the process.
