Yahoo’s potential buyers will offer their third round of bids on Wednesday, according to recode.
Citing sources close to the situation, the site notes that bidders such as Verizon and Dan Gilbert’s group have been informed that the final selection process will occur around July 18. Private equity group TPG is also among the bidders, according to the site, which reports that the bids have ranged from about $3.5 billion to over $5 billion.
Gilbert, who is backed by Warren Buffett, is having quite a few weeks. His pro basketball team, the Cleveland Cavaliers, won its first NBA title last month and the arena with his company’s namesake, Cleveland’s Quicken Loans Arena, is set to host the upcoming GOP convention.
According to earlier reports, several additional private equity firms made first-round bids, including Apax Partners, Bain Capital, Apollo Global Management, Vista Equity Partners and Warburg Pincus.
Since CEO Marissa Mayer took Yahoo’s helm in 2012, the one-time Internet giant has been under intense scrutiny to reinvent itself for the mobile age. But Mayer’s strategies, like pricey start-up takeovers, amped-up news and video content and a portfolio of new apps, haven’t translated to meaningful growth, resulting in a bidding process whereby the company could end up selling itself.
Yahoo launched a restructuring this year that included laying off 15 percent of its workforce, and it kicked off the bidding process that could potentially sell off its core Internet business. Earlier this year, as Yahoo reported that its adjusted profit in the first three months of the year fell slightly less than Wall Street had feared, Mayer said executives were meeting daily about how to sell or spin off Yahoo.
Recode speculates that a sale might not occur, because the offers are low, especially compared to the $26 billion price tag that LinkedIn recently garnered.
Many of the potential bidders will be at the Allen & Co. event in Sun Valley, Idaho, this week, but Mayer didn’t get an invite, according to the New York Post.
If Yahoo is sold and Mayer leaves the company, she’ll receive a $55 million payout.