media trough M&M Global.“
Daily Mail-owner in discussions to bid for struggling Yahoo11.04.2016
Following rumours that Verizon, Time Inc. and Google plan to make a first round bid, Yahoo has attracted the attention of the Daily Mail, which is at a “very early stage” in discussions to make a bid for the struggling internet giant.
According to reports in the Wall Street Journal, the Daily Mail and General Trust (DMGT) are in talks with private equity firms, with a spokesperson quoted as saying “Given the the success of DailyMail.com and Elite Daily, we have been in discussions with a number of parties who are potential bidders.
“Discussions are at a very early stage and that there is no certainty that any transaction will take place.”
Yahoo, currently valued at $38bn, is currently under pressure from shareholders and hedge fund investor Starboard Value has called for the entire board of the company to be replaced. The deadline set for interested parties to submit offers in 18 April.
The Wall Street Journal has speculated that the potential bid could come through a private equity partner acquiring Yahoo’s core web business, with the Mail taking over its news and media properties. Alternatively, the news and media elements might be merged with the Mail’s online operations.
This comes following Yahoo’s announcement earlier in 2016 that it would cut 15% of its employees in an attempt to return the company to profit, as shares have fallen by around 30% since 2014.
DMGT, which is valued at £2.34bn with £216m pre-tax profits in 2015 and shares at 693p, is through to hope to become a global media force through the acquisition.