Verizon Interested in Yahoo Internet Biz

verizonVerizon hopes to expand into a new domain by submitting a second-round bid of $3 billion for Yahoo’s core internet business. Verizon has made it clear that it is not looking to buy all of Yahoo – it has no interest in patents, real estate, or other such assets.

The amount Verizon is pledging was predicted by the Wall Street Journal, which reported the bid would be between $2 billion and $3 billion. However, as of April, Yahoo’s web properties were estimated to sell for between $4 billion and $8 billion, so the Verizon bid is considerably lower. Not unexpectedly, Yahoo is expected to enter in a third round of bidding.

Verizon acquired AOL last year for $4.4 billion, making the potential Yahoo purchase a sensible move. The telecom giant would likely use Yahoo’s web base of over a billion actively monthly users to expand its growing online ad business.

*Source: Reuters