Yah-boo: Bids for internet giant are way lower than anticipated
Bids for Yahoo’s core business are expected to be lower than anticipated.
Several organisations have been linked with the auction process for the internet giant, including Verizon Communications, private equity firms and the owner of the Daily Mail. It also emerged this week that investor Warren Buffett is backing a consortium that is bidding for Yahoo’s assets.
In April, people close to the deal said Yahoo’s core business would likely attract offers of between $4bn and $8bn. But the Wall Street Journal suggests it is likely to fetch between $2bn and $3bn.
Read more: Warren Buffett eyes Yahoo
Bidders are thought to have lowered their expected prices following sales presentations by Yahoo chief executive Marissa Mayer.
Last month DMGT, the company behind the Daily Mail, was linked with a bid for Yahoo’s core assets.
Read more: The bids are in, but what is Yahoo's value to a buyer?
It said in a statement: “Given the success of DailyMail.com and Elite Daily we have been in discussions with a number of parties who are potential bidders.
“Discussions are at a very early stage and there is no certainty that any transaction will take place. We have no further comment at this time. Further updates will be provided as appropriate.”
It later revealed it had not made a bid, but remained “in discussions with parties who may potentially be interested in Yahoo”.