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Verizon angling to buy Yahoo, Google takes interest
According to Bloomberg, Yahoo’s Web business is going up for grabs next week, and Verizon is already making plans to place a first round bid. The company is even willing to scoop up Yahoo’s stake in Yahoo Japan as icing on the cake. Not to be left out in the cold, Google is reportedly considering a bid for Yahoo’s core business.
Yahoo’s plans to sell aren’t really a surprise to anyone. If you hadn’t noticed, the concept of Yahooing yourself never really caught on in the popular vernacular. With Google and smaller players rapidly edging out Yahoo in just about every line of business, the company’s fall in value is fairly predictable. In fact, Re/code reports that the company’s revenue is expected to drop 15 percent in 2016 with earnings dropping by more than 20 percent. It’s a dark spiral.
If Verizon does secure Yahoo, ‘Big Red’ is planning on ousting Yahoo CEO Marissa Mayer and replacing her with AOL’s Chief Executive Officer Tim Armstrong and Verizon’s executive vice president Marni Walden. AOL and Yahoo would be combined under Verizon to be co-run by the two executives.
Microsoft isn’t expected to participate in this bid war, but Bloomberg’s sources speculate that they will toss a token investment to the winning bidder.
In spite of all this, Yahoo’s band is still playing as the ship goes down, with spokespersons claiming that the company is exploring “strategic alternatives” to selling out, including selling off its main internet operations. Those close to the issue are reportedly dubious of these efforts.
What are your thoughts regarding Verizon bidding for Yahoo? Should Google jump into this bidding game with both feet, or would it be wiser for them to stay out? Let us know your perspective on this issue in the comments below!