Verizon Sets Stage To Purchase Second ’90s Internet Relic; Reportedly Bids $3B For Yahoo

Image courtesy of Morton Fox

A second round of bids for Yahoo’s core internet business — including search, mail, and news sites — is officially underway, and Verizon is reportedly coming in hot, offering $3 billion for the assets. 

The Wall Street Journal, citing people familiar with the case, reports that Verizon Communications planned to submit a bid of $3 billion on Monday, meeting the deadline for the second round of bids.

The sources say that a third round of bidding is expected to take place in coming weeks, and that Verizon and other companies could change their prices before a final winner is crowned.

A spokesperson for Verizon declined to provide comment on the matter. If the bid pans out, it would be the second large purchase of a ’90s Internet giant after Verizon acquired AOL for $4.4 billion last year.

Yahoo’s road to a sale began back in December when the company’s board began to weigh the option of selling its many online properties, possibly to private equity firms.

The current action process was initiated in February when Yahoo ditched plans to spin off its stake in Alibaba. The company began taking bids in April.

Since then several companies, including Verizon and private-equity firm TPG, have reportedly submitted bids. Sources say it’s unclear which companies have submitted bids for the second rounds, noting that not all of the bidders would participate in all three rounds.

Verizon’s reported $3 billion bid comes just days after it was reported that Twitter executives sat down with Yahoo executives to discuss a merger deal.

The meeting, which apparently lasted several hours, focused primarily on Yahoo’s financial and whether or not a combined company would fit in with the future of tech.

Verizon to Bid $3 Billion for Yahoo’s Web Assets [The Wall Street Journal]