Bids for Yahoo may Not Match Earlier Expectations
Yahoo's core business is up for sale, but the takeover bids might not be as impressive as the company or the shareholders had hoped for.
In the current confidential auction process Verizon is the favorite and some other bidders are expected to bid in a range of $2 billion to $3 billion in the second round as reported on Thursday. However, either Verizon or Yahoo did not make any comments.
One month back, before the deadline of the first round of bid was over; the analysts predicted that the core Internet business of Yahoo which also includes its assets like Yahoo Sports and Tumblr might fetch something between $5 billion to $8 billion.
However that did not happen and the bidders have lowered their offers after learning further regarding the outlook of the Sunnyvale, California based company
First week of June marks the deadline for the second round of bidding and reports say that it is still not clear whether further bidding rounds would be required to find a suitable buyer.
On Thursday reports said that bids could place Yahoo's core business at a value in range between $2 billion to $3 billion, way lower than the earlier expectations.