FM Correspondent
The figures in the ongoing auction process are not going beyond $3 billion
May 23, 2016: It is not-so-good news for Yahoo. Bids for the net company may not be as high as it would have hoped for.
Verizon, which has been a favourite in the ongoing auction process, is expected to offer not more than $3 billion, according to a report by Wall Street Journal. This is significantly lower than the $4 billion to $8 billion range that analysts previously estimated. The deadline for the second round of bids is the first week of June and it is unclear whether additional rounds of bidding will be needed.
Bidders have lowered their offers after learning about Yahoo’s outlook and witnessing presentations from Yahoo CEO Marissa Mayer, who has been unable to turn the fortunes of the company.
At its peak, Yahoo was worth $100 billion. In late 2004, it was valued at about $52 billion, a bigger market cap at that time than Amazon, Apple and Google.
However, some analysts believe that the figure of $2 billion to $3 billion is too low. And since it has multiple bidders, Yahoo can choose a way to maximise the bids for its core assets.