Yahoo Inc is focused on selling its core assets to U.S. telecommunications company Verizon Communications Inc after reviewing final bids that it received in an auction, people familiar with the matter said on Friday, reports Reuters.
Yahoo views Verizon as the buyer that can deliver the most value, but negotiations between the two companies are continuing, and no deal has yet been reached, the people said.
The value of Verizon’s bid could not be learned. The sources requested anonymity because the negotiations are confidential. Verizon and Yahoo did not immediately respond to requests for comment.
Verizon nears deal to acquire Yahoo
According to Bloomberg, The companies may be ready to announce the deal in the coming days, the people said, asking not to be named because the deliberations are private. The two companies are in one-on-one discussions, one of the people said. The deal hasn’t been finalized and may still fall apart, they said.
The deal would end a months-long bidding process for Yahoo, which began earlier this year when Chief Executive Officer Marissa Mayer — after keeping investors at bay for years — said the company would explore strategic alternatives, including selling its main internet operations.
Mayer was finally bowing to rising shareholder ire that gained steam after the collapse of a plan to spin off Yahoo’s stake in Alibaba Group Holding Ltd. in a way that would minimize the tax impact for investors.
Alibaba, the largest e-commerce provider in China, had emerged as the most valuable piece of Yahoo, and investors sought a way to realize some of those gains. After U.S. regulators failed to give prior approval for the transaction’s tax status, Yahoo was forced to jettison the plan.
AT&T Inc. and Quicken Loans Inc. founder Dan Gilbert, as well as buyout firms Vector Capital Management and TPG were also active in the bidding process until the end.