Yahoo sets deadline for bids

The ongoing rumours that Yahoo’s core business could soon be up for sale have been confirmed as the troubled tech group has set an April 11 deadline for all bids. According to The Wall Street Journal, Yahoo has sent letters to potential buyers, asking for proposals that include the assets they are interested in, as well as the price and how they plan on financing the purchase. It is expected some bidders will only be interested in the company’s core business, while others could propose sole offers for Yahoo’s stakes in Alibaba or Yahoo Japan.

This is the second time Microsoft has shown an interest in Yahoo, the last being in 2008

Among those expected to make a bid for Yahoo’s core business are publishing powerhouse Time, Verizon Communications (the largest wireless communications provider in the US) and New York-based media company IAC. Also included in the list of around 40 entities that have signed non-disclosure agreements during the bidding process are various private equity firms, such as KKR and TPG.

Reuters has reported Microsoft is also in talks with private equity firms to assist with their financing in a bid to maintain the long-standing partnership in place between itself and Yahoo. This is the second time Microsoft has shown an interest in Yahoo, the last being in 2008 when an unsuccessful attempt was made to purchase the company for around $45bn.

The news comes just a week after a proxy fight was launched by Starboard Value (a hedge fund that owns around 1.7 percent of Yahoo) in an effort to overthrow the company’s nine board members, including incumbent CEO Marissa Mayer. As such, the company has been under increasing pressure to start the bidding process before shareholders cast their votes on whether to replace the board at the company’s annual meeting. Although a date for the meeting has not yet been set, it is expected to take place sometime in June or July.

Given Yahoo’s highly disappointing performance in recent years, there is little room to manoeuvre for Mayer and her board. Attempts to grow the business through acquisitions have failed repeatedly, while a lack of innovation has left the company trailing behind rivals Google and Apple. Yet with millions of users worldwide, as well as valuable assets in various entities, Yahoo still has some life in it, and could once again become a goldmine – with the right partners and leaders at the helm. Whether the successful bidder can master such a feat is yet to be seen. And should that be the case, the start of the bidding process could very well be the last breath that this failing company takes – as one of the internet’s first generation of tech giants expires.

For more on Yahoo’s rise and fall, make sure to read the upcoming Spring/Summer print edition of The New Economy