The line for bidders to purchase Yahoo’s assets is getting longer, with Verizon Communications and Google among those expected to put forth offers for the Internet pioneer.
According to reports, enthusiasm for the assets hasn’t waned, even as bankers have circulated a “sale book” that shows a troubled company with dwindling revenue and a need to pare its workforce.
According to a report by Re/Code, the sale book shows that Yahoo estimates 2016 revenue will decline by 15% and earnings will plunge more than 20%. The book also states, according to the website, that Yahoo expects to shed around 1,500 employees, ending the year with about 9,000 workers.
Yahoo has been under the microscope for years and put itself up for sale in February after the company shelved plans to spin out the Internet business. According to reports, Yahoo is looking for $10 billion for the assets, but Verizon, which is expected to launch a bid, currently values them at about $8 billion. Verizon purchased dial-up pioneer AOL last year for about $4.4 billion, and AOL chief Tim Armstrong would likely be tapped to run the Yahoo assets along with Verizon executive vice president and president of product innovation and new businesses Marni Walden if a deal was reached. Yahoo CEO Marissa Mayer, who has come under fire as she has been unable to turn around the Internet pioneer in the three years she’s been at the helm, is not expected to remain with the company in a Verizon sale.
The Yahoo assets include its Internet search engine and properties like Tumblr, Bright Roll and Flury.
In addition to Verizon – chairman Lowell McAdam said earlier this year at an industry conference that the assets could be attractive – and Google, other possible bidders include Chinese e-commerce company Alibaba, Softbank and Time Inc. private equity firms Bain Capital and TPG also are considering bids, according to reports, either alone or with strategic partners.
First round bids are due April 11, according to reports.