Yahoo (NASDAQ:YHOO) is up for sale, and Verizon (NASDAQ:VZ) and Google (NASDAQ:GOOGL) have evinced a strong interest in acquiring the controlling stake in the company, Bloomberg has reported.
However, while Google has said it is interested in buying only the core business of Yahoo, Verizon is believed to be eager to buy out Yahoo Japan Corporation’s stake as well, a move it hopes will make its offer seem more enticing.
Yahoo is believed to be ready to sell its 35.5 percent stake in Yahoo Japan worth $8 billion while Verizon views Yahoo’s core business to be worth less than $8 billion.
Verizon is also reported to have hired the services of three banks to help with the acquisition process. With that many banks in the fray, Verizon seems to be pretty much serious of its efforts and can be considered the frontrunner in acquiring the fledgling web portal.
According to Verizon’s plans, AOL CEO, Tim Armstrong and Verizon’s executive vice-president, Marni Walden will be handed over reigns of the web portal ousting current CEO, Marissa Mayer in the process.
Time Inc. too might be interested in buying Yahoo while private equity funds Bain, and TPG too could be preparing their bids as well, Bloomberg further reported.
Japan’s SoftBank Group Corp., which already has the majority stake in Yahoo Japan, could join the race in acquiring Yahoo. The bank has always had the desire to buy out Yahoo, or the Japanese subsidiary.
Microsoft, which had made a hostile bid to take over Yahoo in 2008, has stated they won’t be bidding this time. AT&T and Comcast have also stated they are staying clear of the bidding process.
The first round bid for Yahoo prime web businesses starts April 11.
Yahoo has been in trouble for quite some time now with stocks plunging 20 percent over the last 12 months. The company’s revenue is projected to drop by 15 percent and earnings by 20 percent in 2016.
All efforts by current chief executive Marissa Mayer have failed to turn around the company with sales plunging while interest in its services and apps too being on the decline. Although, she will still be benefitting from $110 million in severance.