YAHOO BID PROCESS HELPS NARROW FIELD
Barring a surprise or two, shakeout leaves Verizon as likely winner
The bidding process for Yahoo’s Web assets has shaken out some interested parties, leaving Verizon as one of the front- runners and making the value of its patent portfolio a wild card in the complicated, multiplayer process of breaking up Yahoo.
As ever with Yahoo’s next steps, there could still be surprises in store. Monday, YP Holdings, the digital successor to the Yellow Pages, emerged as a bidder, according to Bloomberg.
The digital advertising and search company, which has 70 million users monthly, is submitting a merger proposal as part of Yahoo’s first- round bid process, which ended Monday. YP declined to comment on the report.
Meanwhile, many of the expected dozens of companies thought to be potential bidders have fallen by the wayside with AT& T, Comcast, Alphabet ( the parent company of Google) and IAC/ Interactive, the Web media company chaired by Barry Diller, excusing themselves, according to The Wall Street Journal, which cited persons familiar with the situation.
Alibaba and Time Inc., didn’t bid, according to two people not authorized to speak on behalf of each company. Yahoo declined to comment, as did AT& T and Microsoft, while others did not respond to inquiries from USA TODAY.
The bidding process has been complicated by Yahoo’s apparent reluctance to share key financial data beyond this year. The company has offered dreary business projections for just 2016.
Verizon, which also declined to comment on the bidding process, had publicly announced interest in the troubled Web conglomerate even before the bidding process began. Yahoo’s advertising technology and content such as Yahoo Finance and Yahoo Sports could mesh well with Verizon, which is boosting its mobile video service, analysts say.
Despite acquisitions and a strategic overhaul by CEO Marissa Mayer, Yahoo sales are sinking. It reports earnings after the bell Tuesday. Analysts polled by S& P Global Market Intelligence expect revenue of $ 846.8 million and adjusted earnings per share of 7 cents, significantly shy of the $ 1.04 billion and 15 cents reported in the same quarter a year ago.
Yahoo’s fragile financial state has prompted a sell- off of its assets amid mounting doubts over Mayer’s stewardship since she took over as CEO in July 2012. Although Yahoo has maintained an audience upwards of 1 billion online, eMarketer predicts Yahoo’s worldwide ad revenue will plunge 14% this year to $ 2.83 billion.
Yahoo’s technology patents could truly interest Verizon, says Eric Jackson, managing director of investment firm SpringOwl, which is a Yahoo shareholder.
Yahoo shares were up 0.03% Monday to $ 36.52.