AT&T Inc. has made a bid for Yahoo Inc.
The telecommunications giant had previously skipped attempts to purchase Yahoo’s core Internet business, but has shrewdly kept itself engaged in the process and is now poised to battle rival Verizon in the bidding, according to Bloomberg.
AT&T remained active in the situation via its stake in digital advertising business YP Holdings LLC., which had mused a merger with Yahoo, but is reportedly no longer interested.
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 the bidding process whereby the company could end up selling itself.
To cope, 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. Last month, 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.
According to earlier reports, several private equity firms made first-round bids, including Apax Partners, TPG, Bain Capital, Apollo Global Management, Vista Equity Partners and Warburg Pincus.
Bloomberg reported that the sales process will likely continue for two to three more weeks, at which point if Yahoo is sold and Mayer leaves the company, she’ll receive a $55 million payout. Her pay in 2015 was $35.9 million, representing a 14.5 percent drop from Mayer’s compensation the previous year.