- REUTERS/Elijah Nouvelage
AT&T has made a bid for Yahoo’s core internet business, Bloomberg reports, citing “people familiar with the matter.”
The company had initially decided against bidding in April but has since changed its mind, according to Bloomberg.
This development puts AT&T into competition with Verizon, which is considered one of the likely parties to buy Yahoo’s core business.
Bloomberg reports that Yahoo got 10 initial offers, “ranging from about $4 billion to $8 billion,” again citing people familiar with the matter.
The Wall Street Journal reported last week that bidding for Yahoo’s core business was expected to be in the range of $2 billion to $3 billion,significantly lower than the range of $4 billion to $8 billion that a lot of Wall Street analysts were expecting. But the Journal’s numbers have been called into question by people including CNBC’s David Faber, who called them “completely wrong.”
Part of the confusion of the bids could stem from the fact that Yahoo has never defined what exactly it’s selling as its “core” business. It could include just online advertising, but it could also contain its web intellectual property or real-estate property.
“Given there are still multiple bidders, and Yahoo likely is looking for the cleanest way to maximize value, bids for the core may still come in higher than the reported $2 billion to $3 billion, depending on what assets are included in the bids,” SunTrust’s Bob Peck wrote.
Yahoo declined to comment.
Additional reporting by Eugene Kim.