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Verizon Reportedly Bids $3 Billion For Yahoo's Core Internet Assets

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Verizon Reportedly Bids $3 Billion For Yahoo's Core Internet Assets

Yahoo! Inc. (NASDAQ: YHOO) is expected to receive a bid for its internet properties from Verizon Communications Inc. (NYSE: VZ), but it may not necessarily be pleased with the offer.

The Wall Street Journal, citing "a person familiar with the matter," reported late Monday evening that Verizon plans to submit a second-round bid for Yahoo's internet properties of around $3 billion.

Verizon told Yahoo it may end up paying more or less based on a few overhangs and concerns. For example, if Yahoo would cover the cost of employee severance payments for workers fired as a result of the acquisition, it will ultimately pay a higher price to reflect that.

Verizon has been considered to be the top contender to acquire Yahoo's assets and has an easier path towards integration given its online presence in AOL.

A bid of around $3 billion is consistent with prior reports that Yahoo is unlikely to receive an offer in the $4 billion to $8 billion range, which was considered to be a fair valuation in the past. However, media reports also suggested bidders revised their offer lower after Yahoo provided non-public data that "detailed the company's flagging prospects."

Related Link: Bidding Prices For Yahoo's Internet Assets Notably Below Prior Expectations

However, a lower than previously expected bid could also reflect the fact that Verizon doesn't want to acquire certain Yahoo assets, including patents and real estate properties.

Meanwhile, the private equity firm TPG is also expected to submit a second-round bid. It's also not known if the other bidders that participating in the first-round process plan on submitting new offers themselves.

Shares of Yahoo were trading lower by around 1.35 percent early Tuesday morning.

Posted-In: AOL The Wall Street Journal TPG YahooNews Rumors Asset Sales Tech Best of Benzinga

 

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