Verizon, AT&T Enter Final Round Of Bidding For Yahoo's Internet Assets
After a lengthy and somewhat confusing bidding process to buy Yahoo! Inc. (NASDAQ: YHOO)'s Internet assets, Verizon Communications Inc. (NYSE: VZ) and AT&T Inc. (NYSE: T) are said to be preparing their final offer.
According to Reuters, the two rival telecommunications companies will compete in the third and final round of bidding for Yahoo's web properties. The publication, citing "people familiar with the matter," reported Yahoo will reach out to bidders as soon as Monday and notify them if they successfully advanced to the final round of bidding.
Yahoo expects to end the bidding process by next month, despite the fact that an offer from Verizon came in at the low end of the $3.5 billion to $5 billion range.
Yahoo has been actively seeking a sale of its Internet properties after the company came under pressure to do so from an activist investor and major shareholder Starboard Value. It received interest from the aforementioned telecommunication companies, a consortium led by Quick Loans' founder Dan Gilbert and backed by Warren Buffett, as well as private equity firms.
However, Reuters added that some of the private equity bidders will not be invited to the final round.
Finally, each perspective bidder is likely eyeing different properties Yahoo is looking to sell. For example, Verizon is interested in Yahoo's advertising tools and technology related to search, mail and messenger services. AT&T is looking to expand its mobile video offerings.
Shares of Yahoo were trading lower by more than 1 percent at $36.83 early Monday morning.
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