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Verizon to Make Yahoo Bid, Google Mulling Offer: Report

AT&T, Comcast, Microsoft will not make play for Yahoo, according to Bloomberg report

Marissa Mayer Yahoo
Joe Schildhorn /BFA.com/REX/Shutterstock

Verizon plans to submit a bid to acquire Yahoo’s core Internet business next week, while Google is also considering making a bid, Bloomberg reported Thursday, citing anonymous sources.

Reps for Yahoo, Verizon and Google declined to comment.

[Update: Bids from potential acquirers are now due Monday, April 18, after Yahoo extended the deadline by one week, Recode reported.]

Meanwhile, AT&T and Comcast have decided not to bid for Yahoo, nor will Microsoft (which launched a hostile takeover attempt for the company in 2008) be part of the bidding process, according to the Bloomberg story. Other potential buyers, including Time Inc. and private-equity funds such as Bain Capital and TPG, are still expecting to bid, Bloomberg reported.

Executives for Verizon, which acquired AOL last year for $4.4 billion, have said publicly that they would be interested in scoping out a deal for Yahoo.

As part of its offer, Verizon is willing to acquire Yahoo’s 35.5% stake in Yahoo Japan, according to Bloomberg.

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Verizon — if it wins the bidding — would replace Yahoo CEO Marissa Mayer with AOL CEO Tim Armstrong and Marni Walden, Verizon’s VP and president of product and new business innovation. Armstrong and Walden would run Yahoo and AOL as a combined entity, per the report.

“I would trust Tim Armstrong to navigate the integration (of AOL and Yahoo),” said Rich Tullo, analyst with Albert Fried & Co. “He has done it before.”

Yahoo, amid agitation by activist investor Starboard Value, officially announced in February that it would review “strategic alternatives” including potentially selling all or part of the company. Yahoo retained Goldman Sachs, J.P. Morgan and PJT Partners as financial advisers, and Cravath, Swaine & Moore as legal adviser.

In announcing the advisers, Yahoo said it doesn’t plan to make any other disclosures about the sales process “until a definitive transaction agreement is reached or a determination has been made that none will be pursued.”