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MEGA SALE: Verizon Ready to buy Yahoo for $3 Billion

Verizon Communications are reportedly preparing a bid around the three Billion US Dollars mark to lure present owners of Yahoo to hand over the brand. Although Verizon is not the only Billion Dollars Corporation that made it to the second round of the bidding process currently on going for the acquisition of Yahoo, it is believed that her leaked bid is the highest compared to what the other interested parties were willing to bring to the table.
However, private-equity firm TPG was expected to submit a second-round bid before the deadline, according to an inside source. TPG is perhaps the biggest threat to Verizon at the moment as the equity firm seemed determined to spend as much cash as possible to acquire yahoo. Other parties interested in the acquisition include Advent International and Vista Equity Partners, as well as a group led by Quicken Loans founder Dan Gilbert.
It will be recalled that Yahoo said earlier this year that it is exploring the sale of non-core assets, including real estate and patents, that could fetch more than $1 billion. It is possible that not everyone will bid for all of the core business and that proposals will be structured differently.
In a report by Crunch Reports earlier this week, it was revealed that “Verizon, which acquired AOL Inc. last year for $4.4 billion, is seen as having the clearest path to turning around Yahoo. The telecom giant likely would combine Yahoo’s web properties, which together attract more than a billion users a month, with its growing business in online ads. That would enable Verizon to offer more than at least some other bidders.”
Yahoo boasts of over a billion users monthly and prides as the largest Email service provider in the world by many standards. Yahoo however is believed to still control some shares and activities in the company even after the sale. Verizon likely would pay a higher price if Yahoo agreed to help cover the cost of employee severance payments for any workers cut as a result of the acquisition, the person said.
The bulk of Yahoo’s roughly $35 billion market capitalization is comprised of its stakes in Alibaba Group Holding Ltd. and Yahoo Japan.

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