At Present Verizon Appears to be the Leading Suitor for Yahoo!

At Present Verizon Appears to be the Leading Suitor for Yahoo!

Yahoo after receiving considerable pressure from investors finally accepted buyout offers. Looking at the present situation it seems that Verizon (VZ) is the leading bidder among the suitors for the struggling Internet company.

The activist investors' involvement seemed to have intensified following the changes in the company's plans to selloff of its shares in Alibaba. Yahoo's plans to change course seems to come mainly due to tax implications.

The leading voices that suggested looking into options to increase shareholders value came mainly from Starboard Value, SpringOwl and Canyon Capital. The investors suggested selling Yahoo's core businesses. Yahoo announced its Q4 earnings on February 3 and for the first time discussed options for likely buyout plan.

The buyout option of its core businesses increased significantly after reports said Starboard Value is looking to replace the entire board of the company to maneuver it towards a new direction. Since March, Yahoo! Seems to have increased its bidding process for likely buyers with a deadline till Monday, April 18.

For Verizon, Yahoo's corporate organization and core businesses fits well its AOL business. Last June, Verizon acquired AOL and the company has done well since then.

Yahoo is scheduled to announce its first quarter earnings on April 19 and along with that more details regarding its bidding process is expected to come to light.
 

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