Verizon Communications Inc. Submits First Round Bid For Yahoo Inc.
The search engine company is finally for sales and seems like the first and most interested bidding is being done by Verizon Communication.
According to Bloomberg, Verizon Communications Inc. has submitted its first-round bid for Yahoo! Inc.’s core assets due to which the stock of the internet company spiked up at 2:30 PM while during yesterday’s opening session Yahoo stock was trading down 2.81%. In after-hours trading the stock went up by 0.61% at around 4:46 PM.
Bloomberg also mentioned that the telecommunication company is planning to present a first-round bid for the core assets of the internet company and along with that it also plans to acquire stake in Yahoo Japan. Currently, Verizon along with its subsidiary AOL, are working with three financial advisers for the bid; they value the core assets of the search engine giant at $8 million. This move by the telecom organization shows how seriously it is taking this acquisition.
Verizon is not the only company that has shown interest in acquiring the core assets of Yahoo; Alphabet Inc., AT&T and Comcast Corporation had also shown their interest in buying off the core assets however telecom organization AT&T and Comcast Corporation have backed out from the bidding. In addition to that, technology giant Microsoft Corporation has also taken a step back from the bidding. All these were potential buyers of the core assets of the internet company however most of them have taken a step back because of the intimidating bid that has been going on.
After the company failed to show grow and progress in its core operations, investor Starboard gave a hard time to Marissa Mayer and the management of Yahoo to sell the core operations. Furthermore, Pivotal Research, financial and research firm stated that the stake of the search engine organization is highly dependent on Japan Yahoo and Alibaba Group Holding Ltd. However, it should be mentioned that the company has put all such strategic moves on halt at this point till it releases its upcoming quarterly earnings.
Bloomberg stated that Yahoo’s first-round bidding is likely to commence on April 11, 2016. After the increase in the stock price, right before the closing bell the stock went down by 1.3%. We believe this drop was possibly due to an overall bad day at the market yesterday. Presently, stock of the internet organization is being traded in the market for a share price of $36.17 down by 1.34%.