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Bidding Woes for Yahoo



Yahoo to Entertain Lower Bids Than Expected

The Wall Street Journal has reported that Yahoo will likely receive initial bids starting in the 2-3 billion dollar range for its core internet business. These bid estimates are coming in well below Yahoo’s expected 4-8 billion dollar bid goals, which were reported just last month.

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Perceived bidding front runner, Verizon Communications, is reportedly offering a bid in that lower range, much to the displeasure of top Yahoo officials. Now that the auction of the tech giant is in the second stage it’s possiable that the bidding companies are simply trying to “low ball” their offers to secure the best value for their money.

However, according to financial analyst Brian Wieser, “the problem is, this business requires a lot of ongoing investment” and this simple fact could be the reason behind the lower than expected offers. Couple this issue with Yahoo’s waning stock value and slow growth in the mobile video and ad space and it could spell trouble for the overall price tag of the company.

With the next round of bidding talks a mere 2 weeks away it will be very interesting to monitor the progress of the Yahoo core internet sale process.

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