Verizon’s Chances Of Acquiring Yahoo Get A Boost
Now that other potential bidders are taking themselves out of contention, it appears that Verizon Wireless has become the most likely to purchase Yahoo’s mobile business. As reported by the Wall Street Journal, the biggest wireless carrier in the United States was one of several business entities looking to submit a preliminary bid this Monday.
Other companies were reported weeks before to be interesting in acquiring Yahoo, but with the deadline for preliminary bids fast approaching, it became clear that parties that have expressed some interest before are backing out. One of them is Time, which is now expressing some concern over the challenges of rejuvenating the ailing Yahoo brand. Joining Time that have taken themselves out of the picture include Alphabet (the parent company of search giant Google), Comcast, major US wireless carrier AT&T), and IAC/InterActiveCorp.
Yahoo was once a very powerful brand in the 1990s, but it has since seen its popularity wane with the emergence of Google and Facebook (and other social media platforms). When Marissa Mayer took over as the chief executive officer of the company back in 2012, she did some effective house cleaning, shifting Yahoo’s focus to mobile websites and services.
But despite Mayer’s efforts, Yahoo continues to struggle amidst the fierce competition -- rivals such as Google and Facebook just offer too much for Yahoo to keep up. The company’s board of directors has since decided to start exploring other options beside Mayer’s plans of bringing Yahoo back to its former glory, including the idea of selling Yahoo’s mobile division.
For sure, the possible sale had attracted some potential takers. But the offer was inherently risky. It is no secret that Yahoo’s web operations (search engine, email, online advertising) have been reeling since, like, forever, and any bidder will carry this burden over. It does not help that Yahoo’s own management have been reportedly not efficient enough in providing all information to bidders.
Still, in Verizon Wireless’ hands, Yahoo could bounce back, or at least be put to good use. The Big Red has already acquired AOL in May of last year (to the tune of $4.4 billion), and by buying Yahoo too, Verizon could have the resources it needs to make a killing in the area of mobile video services and online advertising. The carrier is a telecoms giant now, but with AOL and Yahoo, it could become a global media powerhouse.