Verizon Communications is preparing to launch a bid for Yahoo’s Web business, while Google is also considering making an offer, Bloomberg News reported, citing people familiar with the matter.
Verizon’s bid will come as early as next week, the report said, adding that the telecoms giant is willing to acquire Yahoo’s stake in its Japan subsidiary to help sweeten the offer.
Meanwhile, AT&T and Comcast, which were earlier considered to be among the potential suitors for Yahoo, are said to have decided against bidding.
Microsoft, which failed with a hostile bid for Yahoo in 2008, also won’t bid this time, a source was quoted as saying.
But Time Inc. is still evaluating a bid, and private-equity funds Bain and TPG are also planning to make a run at the business, either alone or by backing a strategic acquirer, the report said.
First-round bids for Yahoo’s main Internet assets are said to be due April 11.
Verizon and its subsidiary AOL are working with at least three financial advisers on the Yahoo bid, a sign that the group is serious about its acquisition plans.
Verizon values Yahoo’s core business at less than US$8 billion, according to the report.
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