Verizon Planning to Place a Bid of $3 Billion for Yahoo

Yahoo Inc. has been on a downward spiral in terms of its valuation for the better part of a decade now and in spite of the best efforts on the part of Marissa Mayer, the online properties of the company have not been able to touch the earlier heights that the company had reached in a different era. In such a situation, it is not a surprise that the company is looking to sell all its online properties and according to the latest reports in the Wall Street Journal , the telecommucation giant Verizon Inc. are all set to submit a bid of $3 billion for all those properties. According to the report, this was the second round of the bidding process and Verizon submitted its bid of $3 billion on Monday, however it needs to be kept in mind that there are plenty of other bidders who are in the running to take over the internet properties of Yahoo.

Most sources familiar with the developments have stated that the company might do another round of bidding in order to get the best possible deal and as at this point in time, it is unclear which of the bidders are in the front seat, as it were. According to a report on Bloomberg, "Bidders have included TPG, Verizon, YP Holdings LLC and a consortium led by Bain Capital LP and Vista Equity Partners LLC, people familiar with the matter have said. Berkshire Hathaway Inc. Chairman Warren Buffett is also backing a group bidding for Yahoo's Internet assets, people familiar with the matter have said. The company has received more than 10 initial offers ranging from about $4 billion to $8 billion, people familiar with the matter have said."

Although it is true that Yahoo boast of a huge user base, which is estimated to be around 1 billion, it has not been able to capitalise on it and has failed to keep pace with companies like Google and Facebook, who have surged ahead. In such a situation it is not really a surprise that the company is trying to get rid of its internet assets while they still have so many suitors.