Rumors have emerged that AT&T could still make a “surprise offer” to buy Yahoo core internet business
During the last week of the previous month, news emerged that AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ) have entered into a bidding war to acquire Yahoo! Inc.’s (NASDAQ:YHOO) web assets. Following that, AT&T, the second-largest mobile telecommunications company in the United States, was reported to have bid in order to buy Yahoo’s core internet business while the amount was not disclosed.
On Monday of this week, Verizon announced that it had entered a second round of bidding which saw the company offering $3 billion for the acquisition of web assets put on sale by Yahoo. As of Monday and late Tuesday, Verizon, the New York based telecommunication company, was deemed to be the leading contender to acquire Yahoo’s web assets, however according to a source claiming to have the knowledge of the situation, AT&T is still a strong contestant and is well positioned to make a “surprise offer”, taking away the limelight. Moreover, the terms of the bid were not revealed.
Alongside Verizon and AT&T, several private equity firms are also taking part in this bidding war. Private equity firms like TPG, Advent International, Vista Equity Partners, accompanied by a group led by Quicken Loans’ founder Gilbert, are contestants in the race to purchase Yahoo’s internet assets. Furthermore, it was expected that besides Verizon, TPG was also going to submit a bid price in the second round of bidding as Monday was the deadline.
The Wall Street Journal reported that there was no news of other contestants submitting a bid in the second round. Yahoo is expected to conduct another round of bidding, which would be the third, and after which the contender with the highest bid will be the new owner of Yahoo’s core internet assets. As the news regarding AT&T’s surprise entry in the bid war surfaced, the stock reacted positively. It closed at $39.79, up about 1.14% against the previous day’s close.