Yahoo will likely get bids for its core Internet business that are far lower than what had been expected just last month, says the Wall Street Journal. Fred Katayama reports.
More woes for Yahoo. Companies bidding for its Internet business apparently unwilling to shell out the money Yahoo was expecting. The Wall Street Journal reportedly will likely receive bids in the $2 to $3 billion range for its core Internet business. That's a far cry from the $4-8 billion that it had previously been expected to fetch just last month. Perceived front-runner Verizon Communications reportedly in that lower range. It could be that bidders are simply trying to low ball their offers in the auction, now in its second stage. But these bids come after Yahoo CEO Marissa Mayer has given interested parties sales presentations and data about its prospects. Pivotal Research analyst Brian Wieser said, "The problem is, this business requires a lot of ongoing investment." Mayer has failed to revive Yahoo's fortunes since becoming CEO four years ago. The growth from the area she's been betting on - mobile, video, and ads - has been slowing. Yahoo's shares dropped in early trading, chipping away at its 11 percent gain this year. All this coming roughly two weeks before the deadline for the next round of bids.