Yahoo! (NASDAQ:YHOO) has been struggling in the market for quite some time now and for good reason. The reality is that the current CEO is doing a horrible job and we're seeing drastic declines in just about every indication of user growth. As a result, Yahoo has announced it will be auctioning off its company and the auction is getting rather interesting. Today, we'll talk about who's leading the auction, who has dropped out of the auction and everything you need to know about the upcoming YHOO acquisition.
Who's In Front?
According to a recent report from International Business Times, the company leading the charge in the auction for Yahoo is Verizon Communications (NYSE:VZ). At the moment, Verizon is the largest wireless provider in the United States. However, the company isn't planning on stopping there. In fact, while Verizon is maintaining its wireless service business very well, the company is also focusing on new efforts in mobile video and advertising. In fact, just last June, Verizon acquired AOL in a deal worth $4.4 billion. Now, the company is eyeing YHOO and based on recent reports, it seems as though Verizon is going to be the company to purchase the struggling internet giant.
Who Has Opted Out Of The Auction?
While Verizon and some others are showing strong interest in purchasing Yahoo, there have been a few companies that have already decided to opt out of the auction. Surprisingly, Google's parent company, Alphabet (NASDAQ:GOOGL) was one of those companies. Early on, more than 40 firms had expressed interest in owning Yahoo. However, that number seems to be dwindling down. Recently, Time (NYSE:TIME), Comcast (NASDAQ:CMCSA), AT&T (NYSE:T) and Alphabet decided to opt out of the auction. Why did they bail out? While there haven't been many statements from the companies as to why they have opted out, I think the writing is on the wall. Whatever company decides to acquire YHOO is going to have its work cut out for it and it won't be easy.
So, Who Will Be The Buyer?
Right now, I would say that it's a toss up between Verizon and Alibaba (NYSE:BABA). On the Verizon side, the company is working to move more toward online media and advertising in order to expand its horizons. After all, the company already dominates the wireless services industry in the United States. With AOL, adding Yahoo to the list would be a great move. On the other hand, Alibaba has expressed interest in Yahoo for quite some time and would likely benefit greatly if it decided to purchase the company. Alibaba would be happy to use YHOO technology and considering the genius behind the company, Jack Ma, BABA would have no problem turning things around. Nonetheless, regardless of who actually buys YHOO, there are going to be some big changes.
I'm excited to see what the end result turns out to be.
Who will buy YHOO?