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Verizon Nears Deal for Yahoo's Internet Businesses

July 22,2016 19:05

Verizon, with a market cap of roughly $225 billion and about $4.5 billion in cash on its balance sheet, has the means to purchase Yahoo's declining Web assets and a logical blueprint for folding them into its fledgling digital media business, which ...



Yahoo CEO Marissa
Mayer.
AP Photo/Frank Franklin
II

Verizon is close to acquiring Yahoo,
according to a report from Bloomberg.

Bloomberg reports that Verizon is in "one-on-one" talks with the
search giant to acquire the company and that an announcement
could come in days.

Bloomberg's report indicates a deal price of about $5 billion,
which
Recode has also confirmed. This deal would exclude Yahoo's
patent portfolio — Verizon instead wants to
add Yahoo's internal assets to AOL, according to
Recode.

CNBC reports
that Yahoo's real estate is included in Verizon's bid. CNBC's
David Faber added that a deal could take six to nine months to
close.

Yahoo shares were up about 0.4% in early trading Friday after the
news. Verizon shares were up 0.5%.

Earlier this week Yahoo reported
second-quarter earnings in what was widely seen as CEO
Marissa Mayer's last report at the head of the company.

Yahoo missed on profits but beat expectations on the top line,
though
Wall Street wasn't much interested in the company's core
results, as most of the focus around the company in recent
months has been on its looming sale.

Mayer told investors the company had made "great progress" in
pursuing strategic alternatives.

The company
formally launched the process of selling its core business
back in February. Final bids for the company's core business were
reportedly due this past Monday.

The auction
attracted a diverse array of bidders including the Japanese
online retailer Rakuten and the Yellow Pages owner YP, which is
backed by AT&T, Reuters reported in April. Several
private-equity firms also made early bids.

Exactly what bidders had sought varied, with
reports earlier this week indicating that bids for Yahoo
ranged from $4 billion to $6 billion depending on whether patents
and real estate were included.

Verizon, along with Quicken Loans founder Dan Gilbert and Vector
Capital Management, had been seen as the three favorites to
acquire the company,
Bloomberg's Alex Sherman reported.

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