Report: Warren Buffett may be part of bid for Yahoo
Berkshire Hathaway chairman Warren Buffett may be eyeing a purchase of floundering internet portal Yahoo, Reuters reported Friday.
According to sources familiar with the negotiations, Buffett is backing a group that includes Quicken Loans founder Dan Gilbert interested in buying Yahoo's internet assets.
The sources told Reuters the group is in the second round of bidding for Yahoo's assets, with Buffett helping to finance the deal.
The sources were quoted on condition of anonymity because details of the sale process were confidential. Buffett offered no immediate comment when Reuters reached him by telephone. Quicken Loans declined to comment on behalf of Gilbert and Yahoo also had no comment.
Yahoo has declined to provide details about the auction since announcing its intent to explore a possible sale in February. Analysts have estimated its internet operations could fetch anywhere from $4 billion to $10 billion, with most investors now betting that any sale would come at the high end of that range.
Yahoo CEO Marissa Mayer, a former Google executive, has been unsuccessfully trying to turn around Yahoo for nearly four years. Instead, Yahoo's long-running slump has deepened during her reign.
Its first-quarter earnings report, released in April, showed Yahoo's revenue fell 18 percent from the same time last year, to $859 million. It's the largest decline in Yahoo's quarterly net revenue since the company hired Mayer.
Yahoo lost $99 million during the period, compared with a $21 million profit last year. A big chunk of the loss stemmed from the costs of laying off about 1,000 workers during the quarter to reduce the company's workforce to 9,400 employees through March.
The company disclosed late last month that Mayer will receive a $55 million severance package if she is ousted her from her job by new owners.
The payout disclosed in a regulatory filing consists of cash, stock awards and other benefits that Mayer would get should she be forced out as CEO within a year after a sale.
Although Yahoo's board is still evaluating takeover offers, most investors are betting that the company will decide to sell its well-known brand and an Internet business that includes a popular email service and sections focused on sports and finance.