The tech world is waiting patiently to hear fate of the distressed internet giant Yahoo. Yesterday marked the deadline for potential suitors to offer bids which included telecommunications providers Verizon Communications, AT&T Inc., a Warren Buffett backed group led by Quicken Loans founder Dan Gilbert, and a number of private equity firms. Estimates are as high as $8 billion for the purchase of Yahoo but will likely fall closer to $6 billion for its most valuable assets in news, sports, finance and Yahoo’s email service.
Surprisingly Yahoo’s stock has climbed 14 per cent in 2016 but despite this small uptick, the bidding will likely not be affected. CEO Marissa Mayer has boasted aggressive expenditure cuts as the company is now around on the shoulders of about 8,800 employees.
“With the lowest cost structure and headcount in a decade, we continue to make solid progress against our 2016 plan,” said Mayer in announcing the Q2 results. “In addition to our efforts to improve the operating business, our board has made great progress on strategic alternatives. We are relentlessly focused on delivering shareholder value.”
Yahoo’s declining revenue is a certain sign of the companies relevance, dropping from $1 billion at this time last year to $842 billion last quarter. This decline, in no small way has been lost to as advertising dollars pour into Facebook and Google.