Yahoo reported its first quarter financials this week, at the same time the company is considering offers from organizations that want to buy the struggling online giant.
The company reported a net loss of $99 million, a significant drop since this time last year when it reported net earnings of $21 million. However, Yahoo CEO Marissa Mayer put a positive spin on the first quarter results, saying they were in line with expectations.
“Our 2016 plan is off to a solid start as we continue to focus on driving efficiency, lowering costs, and improving long-term growth," she said. "In tandem, we made substantial progress towards potential strategic alternatives for Yahoo. Our board, our management team, and I are completely aligned on this top priority for shareholders."
This last comment may have been made to quell concerns that Yahoo is not serious about selling its business, which the Wall Street Journal says has an estimated worth of $4 billion and $5 billion, according to its interview with Cantor Fitzgerald analyst Youssef Squali.
“There is a fair amount of skepticism about their willingness to really sell the business,” Squali told the WSJ.
Nonetheless, Yahoo in March sent letters to buyers asking for proposals, and it has reportedly received several.
Verizon is considered to be the leading candidate, according to Reuters. The communications service provider bought another online giant, AOL, last summer for $4.4 billion. Others in the running include Daily Mail, a U.K. media company; TPG, a buyout firm; and an investor group including Bain Capital, Vista Equity Partners, and former Yahoo CEO Ross Levinsohn, according to the WSJ. Advent International and Silver Lake have also reportedly expressed interest in bidding. A Mobile World Live report indicated that private equity firms Apax Partners, Apollo Global Management, and Warburg Pincus also submitted bids in the first round.
According to the WSJ, Yahoo will want to move toward a resolution on all of this in time for its summer shareholder meeting.
Executive Editor, TMC
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