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LATIN, MATRIPEDICABUS, DO YOU SPEAK IT
http://www.bloomberg.com/news/artic...proceed-with-yahoo-bid-as-google-weighs-offer
Verizon Communications Inc. plans to make a first-round bid for Yahoo Inc.s Web business next week, and is willing to acquire the companys Yahoo Japan Corp. stake to help sweeten the offer, according to people familiar with the matter.
Google, the main division of Alphabet Inc., is also considering bidding for Yahoos core business, a separate person said.
Potential suitors AT&T Inc. and Comcast have decided against bidding, some of the people said, asking not to be identified as the discussions arent public. Microsoft Corp., which failed with a hostile bid for Yahoo in 2008, wont bid this time, another person said.
Time Inc. is still evaluating a bid, while private equity funds Bain and TPG -- among others -- are also planning to make a run at the business, either alone or by backing a strategic acquirer, the people said.
While the buyout firms havent yet paired themselves with a strategic buyer, they are open to the idea of doing so, the people said.
Yahoo has extended the deadline for first-round bids by a week, to April 18, according to a person with knowledge of the matter.
Shares of Yahoo Japan jumped 6.4 percent in Tokyo, the biggest gain in almost three months. Yahoo shares fell 1.3 percent to $36.17 in New York Thursday.
Three Banks
Verizon and its subsidiary AOL Inc. are working with at least three financial advisers on the Yahoo bid, said three of the people. Hiring so many banks is a sign that Verizon is serious about its takeover plans -- it has said since late last year that it was interested in buying some or all of Yahoo.
Verizon, which has a market value of about $213 billion, could give the Yahoo Japan stake to its shareholders or sell it, one of the people said.
Sunnyvale, California-based Yahoo would prefer to sell its 35.5 percent stake in Yahoo Japan, worth about $8.5 billion, along with the core business, Bloomberg reported last month. The valuation of the combined assets would make it more difficult for private equity firms to finance a bid for both parts.
Representatives for Yahoo, AT&T, Comcast, Time, TPG and Verizon declined to comment. Representatives for Bain and Google didnt immediately respond to requests for comment.
Based on the financial information that its seen, Verizon values Yahoos core business at less than $8 billion, one of the people said. Verizon, as well as some private equity firms, met with Microsoft last month to talk about potential funding for a bid, people familiar with the matter said at the time.
Microsoft hasnt committed any funding and is unlikely to provide anything more than a token investment to the winning bidder, one of the people said.
A spokesman for Microsoft declined to comment.