Times Inc, Verizon Communications, Microsoft, and many other private equity companies are reportedly planning to buy a stake in Yahoo. And now, we have another potential bidder. The parent company of U.K. based tabloid Daily Mail is considering to partner with private equity firms to bid for Yahoo, reported the Wall Street Journal citing unnamed people familiar with the matter.
According to the report, there could be two possible directions of the Dailymail-Yahoo deal. First, the private equity firm could buy the core web business of Yahoo while Daily Mail would take over the news and media properties to strengthen its own media platform.
A second possibility is that the PE firm may acquire the core web business and merge its media and news properties with the Mail’s online operations. A new company will be formed by the merged units that would be run by the Mail.
And according to the report, this scenario will give a larger equity stake to the Mail’s parent company than under the first possibility.
Earlier, Yahoo had set a two-week deadline for preliminary bids to invite buyers to buy its key web business and Asian assets.
Due to the declining business and the inability of CEO Marissa Mayer to turn around the company fortunes despite several measures, the company has been under tremendous pressure from the shareholders especially by the investor and hedge fund Starboard Value LP to sell its business.
Yahoo had announced an “aggressive strategic plan” to simplify the company during the fourth quarter earnings call. And during the same event, Mayer also talked about the company’s plans to look for “qualified strategic proposals”.
The last date of submitting the bids has been extended from April 11 to April 18. Reportedly, 40 companies have so far shown interest in Yahoo but it is not clear how many of those are serious.