The New York Post reported late Wednesday evening Verizon Communications Inc. VZ is now considered the front-runner to acquire Yahoo! Inc. YHOO's internet properties, but a deal isn't guaranteed just yet.
The New York Post stated Verizon's "simple cash deal" would offer Yahoo's CEO Marrisa Mayer a "grace exit." The company is also said to be willing to "deal with the messy business" of Yahoo's mass firings.
Verizon is also eyeing Yahoo's 35.5 percent stake in Yahoo Japan, the report added.
However, since SoftBank owns a 43 percent stake in Yahoo Japan, its relationship with Yahoo may give it an edge, or could complicate matters even further. SoftBank also pays Yahoo $150 million a year for search services under a contract that expires in 2017 and also pays a 3 percent royalty for using the Yahoo Japan brand.
"SoftBank wants to fix" its arrangement with Yahoo, the New York Post quoted a source as saying. The source continued that SoftBank could buy all of Yahoo and create a new combined entity by having Yahoo Japan issue new shares to Yahoo's investors.
"SoftBank is the only realistic buyer to maintain Yahoo's profitability," the source also said.
Finally, the New York Post stated that while there may be several bidders, "the only real competition" will be between Verizon and SoftBank.
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