Verizon, Google In a Race To Acquire Yahoo’s Web Business

Verizon and Google may be in the bid to acquire Yahoo’s web business, according to report by The Guardian.It was report that Yahoo had been circulating financial documents to prospective buyers. The documents showed the financial situation of Yahoo is becoming increasingly dire, according to Tech news website Re/code.

Apart from this, the report said that Marissa Mayer, CEO of Yahoo is expected to be replaced by Tim Armstrong, CEO of AOL or Marni Walden, Verizon’s executive vice-president. If Mayer is ousted in the sale she could benefit from $110 million (approximately Rs 731.8 crore) severance package.

Mayer’s efforts to turnaround the company has not gone too well, as not only has the company’s stocks declined by 20% but the business has come under severe criticism from its investors.

Yahoo has struggled to get back on its feet under Mayer in recent times. The report by The Guardian also said that some of the big names hired under Mayer have not performed. Companies such as AT&T, Microsoft and Comcast have decided not to bid, according to a Bloomberg report. Bain and TPG which are private equity funds may also planning to bid for Yahoo, said The Guardian report.

The first round bids for Yahoo’s main web assets are due on April 11. The company reportedly will sell 35.5% stake in Yahoo Japan which is worth $8.5 billion (about Rs 56,548.4 crore) apart from the core business which is valued at less that $8 billion (Rs 53,222 crore) by Verizon.

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