Yahoo's Latest Bidder(s): Warren Buffett And Dan Gilbert?
Yahoo! Inc. (NASDAQ: YHOO) just got an interesting boost Friday evening.
The company's Internet core being up for sale has been making the rounds for months now, with some of the most recent reports saying Verizon Communications Inc (NYSE: VZ) had the leg up on others. Two billionaire friends might be changing that.
Reuters has reported that Berkshire Hathaway Inc (NYSE: BRK-A) Chairman Warren Buffett is backing a consortium that includes Quicken Loans founder Dan Gilbert, according to people familiar with the matter.
"The consortium is in the second round of bidding in the auction for Yahoo's assets, the people said, asking not to be identified because details of the sale process are confidential."
Shares of Yahoo rose about 1.2 percent to $36.92 in the after-hours session.
Buffett offered Reuters no immediate comment when reached by telephone. A Quicken Loans spokeswoman declined to comment on behalf of Gilbert, while Yahoo did not immediately respond to a request for comment.
Buffett and Gilbert previously worked together on a $1 billion NCAA March Madness giveaway.
"The relationship between these prosperous pals blossomed when Buffett came to Detroit in November 2013 to kick off the Goldman Sachs 10,000 Small Businesses program, which Buffett co-chairs," Crain's reported in 2014. "The $20 million program trains entrepreneurs in major U.S. cities as a way to create economic growth. Gilbert became Buffett's tour guide to Detroit."
For the Billion Dollar Bracket, Quicken Loans offered the money and Berkshire Hathaway insured the prize, Crain's noted.
"Quicken paid an estimated $10 million for the Berkshire insurance. Quicken, in turn, collected thousands of sales leads from participants for its mortgage originating business," the report said.
The contest was administered through Yahoo and Yahoo Sports, although it led to some messy legal entanglements.
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