Yahoo will reportedly start contacting potential buyers of its core internet business as soon as today, with first-round bids expected in about a month. The Silicon Valley-based technology company announced on Friday that it had formed a strategic review committee of independent directors which, in turn, had appointed financial and legal advisers.
Yahoo (NASDAQ:YHOO) will reportedly start contacting potential buyers of its core internet business as soon as today, with first-round bids expected in about a month.
The Silicon Valley-based technology company announced on Friday that it had formed a strategic review committee of independent directors which, in turn, had hired Goldman Sachs, JP Morgan and PJT Partners as financial advisers and Cravath, Swaine & Moore as legal adviser.
“The strategic review committee and its advisers are establishing a process for outreach to and engagement with potentially interested strategic and financial parties,” the company said, adding that the committee will advise the board on whether any proposed transaction is in the best interests of the company and its shareholders.
That outreach process could begin today, although first-round bids not expected for at least a month, Bloomberg cited people familiar saying.
Mobile operators Verizon Communications (NYSE:VZ) and AT&T (NYSE:T), cable giant Comcast (NASDAQ:CMCSA) and private equity firms Bain Capital Partners, KKR and TPG have been named as potential suitors. Verizon, AT&T and Comcast have declined comment, while Bain, KKR and TPG were not immediately available.
Yahoo board chairman Maynard Webb (pictured) said “The board is thoroughly committed to exploring strategic alternatives while simultaneously supporting management and the employees in the implementation of Yahoo’s strategic plan.”
Yahoo unveiled its latest turnaround plan early this month, with a view to simplifying the company, narrowing its focus and increasing efficiency. At the time, Webb opened the door to a potential sale by saying that the board believes it is in the best interests of shareholders to explore strategic alternatives while executing the management plan. He said that separating the company’s stake in Chinese internet retailer Alibaba from the operating business remains a primary focus, but the board will also “engage on qualified strategic proposals”.
Verizon CEO Lowell McAdam wasted no time in confirming his company’s interest in Yahoo, saying just a few days later that “at the right price, I think marrying up some of their assets with [subsidiary] AOL and the leadership would be good”. Tim Armstrong, CEO of AOL, has reportedly been tasked with leading preliminary discussions about a potential bid for Yahoo.
Verizon had been linked to the asset since last December, when CFO Fran Shammo said the company would look at it under the right circumstances.