Last week, Yahoo extended the deadline for potential bidders to submit proposals to acquire the Silicon Valley company. Already reports have surfaced that companies like Verizon and Google are seeking to make a move, but today it seems that the parent company of the U.K.-based Daily Mail is in talks with private equity firms to make its own bid for Yahoo.
Things are getting interesting.
The Wall Street Journal reports that if the Daily Mail actually submits a bid, it could take one of two forms: A private equity partner would acquire Yahoo’s core web business, with the Daily Mail taking over the news and media properties, or the private equity partner would acquire Yahoo’s core web business and merge the media and news properties into the Daily Mail’s online operations.
Reports indicate that as many as 40 firms have expressed interest in what Yahoo has to offer, but how many are actually serious remains unknown. Time Inc. is perhaps one of the few well-known publication and media companies contemplating a bid, drawing some parallels with the Daily Mail.
Yahoo has been focusing on how to sell its core internet business since December. After some shareholders flip-flopped on whether the company should spin out its Alibaba holdings into a standalone company, the remaining option became to part with Yahoo’s core business. During its Q4 2015 earnings, the firm revealed that it was implementing an “aggressive strategic plan” to streamline the company, hopefully in a move to make it more enticing to potential buyers. As a result, it decided to let go of 15 percent of its workforce, or 9,000 employees and fewer than 1,000 contractors.
According to documents obtained by Re/code, the financial situation at Yahoo isn’t great. It’s said that revenue at the company is dropping by close to 15 percent and earnings by over 20 percent. So while quite a few companies are contemplating bids, the real test will be to see which ones can stomach the seemingly dire circumstances Yahoo finds itself in and remain adamant that they can use its offerings.