News
U.S. operator has tabled a bid for Internet company, sources say; sale process expected to last for another two to three weeks.
AT&T is still in the frame to acquire Yahoo, putting it in direct competition with arch-rival Verizon, which is widely considered to be one of the frontrunners to pick up the troubled Internet business.
AT&T has made a bid for Yahoo, Bloomberg reported on Wednesday, citing unnamed sources familiar with the situation.
It had previously decided not to bid outright, but instead relied on its stake in advertising company YP Holdings to keep it in the race, the newswire explained. YP was pursuing a merger with part of Yahoo, but has since backed away from that plan, one of the sources said.
Verizon, meanwhile, was named as the most likely candidate to secure Yahoo in a Wall Street Journal report last month, but according to Bloomberg’s sources it was not among the highest bidders in the first round of offers.
Yahoo has reportedly received more than 10 initial bids ranging from around US$4 billion-$8 billion.
The higher bids came from private equity firms that are less familiar with Yahoo’s business than Verizon is, the sources added. Yahoo’s advisors are taking their time to consider those offers, they said, predicting that the sale process will likely continue for a further two to three weeks.
However, the potential for synergies between Yahoo and its recently-acquired AOL business means Verizon is still considered a leading contender for Yahoo.
On a similar note, Verizon’s ownership of AOL could be driving AT&T to compete by making an Internet and advertising acquisition of its own, hence its interest in Yahoo.
Neither Verizon nor AT&T provided Bloomberg with an official comment.
