scorecardVerizon to place bid for Yahoo next week, Google considering bid too
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Verizon to place bid for Yahoo next week, Google considering bid too

Verizon to place bid for Yahoo next week, Google considering bid too
Tech1 min read
Yahoo CEO Marissa Mayer delivers her keynote address at the annual Consumer Electronics Show (CES) in Las Vegas    Thomson Reuters

Verizon is expected to place a bid for Yahoo next week, while Google is also considering making an offer, according to a report by Bloomberg.

The report said that Verizon is planning to make an offer for both Yahoo's core business and its stake in Yahoo Japan. Verizon values Yahoo's core business at less than $8 billion, it said.

Verizon plans to replace Yahoo CEO Marissa Mayer with AOL CEO Tim Armstrong and Verizon's executive VP Marni Walden, who would run the combined entity, the report said.

Aside from Google, Time and private equity funds Bain and TPG are planning to place a bid, according to the report.

Microsoft, AT&T, and Comcast are dropping out of the bid, although there's a small chance that Microsoft could provide a "token investment" to the winning bidder, it said.

Softbank, the majority owner of Yahoo Japan, is also not showing much interest in Yahoo's core business, it said.

Yahoo's stock went up 1.5% following the news. Yahoo set the deadline to place bids for its core business on April 11, according to previous reports.

Yahoo is struggling after a 3 year turnaround effort led by Mayer failed to gain much traction. Recently, the company put its core internet business up for sale, following pressure from activist investors to make "significant changes" to the company. According to a Re/code report, Yahoo's telling potential buyers that it expects to see revenue drop another 15% this year.

Yahoo's representative wasn't immediately available for comment.

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