Yahoo will have a new bidder in the UK-based Daily Mail & General Trust (DMGT); the company owning the popular newspaper, Daily Mail. According to reports, it has initiated talks with some private equity firms for making a bid for Yahoo, which has a bid date for April 18.
Yahoo announced the sale of its core web business, including Yahoo Finance and Sports in February, with a claimed market capitalisation of US$38billion (AU50.4 billion), reports the USA Today .
The DMGT and associates would bid for Yahoo’s assets with multiple scenarios in hand.
“Given the success of dailymail.com and Elite Daily, we have been in discussions with a number of parties who are potential bidders for Yahoo,” said a spokesman for DMGT.
“Discussions are at a very early stage and there is no certainty that any transaction will take place,” he added.
The UK media company has been building up its operations in the US, including the acquisition of news site Elite Daily and is mulling a planned foray into TV with a syndicated news show with Phil McGraw.
It has multiple options on Yahoo. One is the total takeover of its news and media properties under a private equity deal. The other is allowing a private equity company to stake in the Daily Mail’s digital operation after enriching it with Yahoo’s properties and DMGT remaining as a majority shareholder, reports The Guardian.
Yahoo slipped into losses after its competitive edge was hammered down by giants like Google and new players like Facebook and Snapchat.
In February, Yahoo’s embattled chief executive Marissa Mayer announced a strategic review of the web company, implying the sale of assets, downsizing of personnel and shutting off foreign offices and digital magazines.
Despite its fall in profitability, suitors are impressed that the web portal still commands a huge audience, especially in the US market.
For Daily Mail, its digital growth in the US market has been substantial and had 66 percent spurt in revenue in the last three months. However, a DMGT spokesman refused to elaborate on the media reports on a prospective deal.