Verizon likely to Have Lodged $3bn Second-round Bid for Yahoo

 

Private equity firm TPG reportedly also in the running for troubled Internet company's core Web assets.

 

Verizon late on Monday likely made a second-round bid of US$3 billion (€2.64 billion) for Yahoo's Internet business.

 

Sources cited by The Wall Street Journal yesterday said that the U.S. telco was expected to make an offer ahead of Monday's deadline. According to the report, Verizon wants to acquire Yahoo's core Web business, and is not interested in its real estate or patent portfolio.

 

The report also claimed that private equity firm TPG was preparing a second-round bid of its own.

 

In the first round, the struggling Internet company reportedly received more than 10 bids for its Web business, ranging from $4 billion to $8 billion.

 

40 companies initially showed interest in Yahoo, according to an earlier WSJ report in April, but only a handful opted to push ahead with offers.

 

Private equity firms are said to have lodged the highest bids so far, but Verizon is still thought to be leading the race because it is more familiar with Yahoo's business.

Verizon may or may not face competition from a close rival though.

 

April's WSJ report claimed that AT&T was one of the 40 interested parties to have decided against making a bid. However, Bloomberg reported in May that AT&T did in fact make a first-round offer after digital advertising company YP Holdings, in which AT&T owns a minority stake, decided not to proceed with a bid.

 

Yahoo is expected to hold one further round of bidding.