Verizon, Google Reportedly Planning To Bid On Yahoo
SUNNYVALE (KPIX 5) – After a push to stay afloat, it seems Yahoo is done fighting and big names in tech are reportedly placing their bids for the Sunnyvale-based internet pioneer.
Verizon is topping the list of potential buyers. The telecom giant has reportedly hired several banks to shepherd the deal, which is a strong sign they are serious about this.
According to a report by re/code, a leaked document showed Yahoo's revenue forecast for this year falling by 15 percent to $3.5 billion, with earnings falling by 20 percent.
Verizon is said to value Yahoo's core business at $8 billion.
The re/code report said "the financial situation at the Silicon Valley Internet giant is becoming increasingly dire."
CEO Marissa Mayer's efforts to reboot the company into a content provider, by launching a video web portal, fell flat and the stock price was punished, dropping more than 20 percent this past year.
If the acquisition by Verizon goes through, Mayer would be replaced with top executives from AOL, which was purchased by Verizon last year. Mayer could wind up with a severance package worth $110 million.
Google was also reportedly interested, but mainly as a way to gobble up audience and block any rivals.
First round bids for the company are due on April 18th.
