The Daily Mail, a British newspaper owned and published by the Daily Mail and Media Trust plc (DMGT), is interested in acquiring the news and media assets of Yahoo Inc. (NASDAQ:YHOO), according to Bloomberg based on information from a person familiar with the situation.
The report indicated that Daily Mail engaged in discussions, to join potential bidders who want to buy the American technology company. The British newspaper contacted six private equity firms regarding the matter.
Yahoo media assets could boost Daily Mail’s online presence
The British newspaper could submit a proposal along with a partner that would buy the technology company’s web business. An alternative deal would be for the buyer to combine the online operation of the Daily Mail and Yahoo’s media assets into a separate company.
The media assets of Yahoo could boost the growing online presence of Daily Mail in the United States. The British newspaper’s U.S. website—DailyMail.com and its website in the UK—Mail.com are among the most read English sites with 75 million unique visitors. Yahoo sites have 206 million unique visitors in January, according to ComScore.
Alex DeGroote, a media analyst at Peel Hunt in London, commented, “People need to remember that we are talking about the Daily Mail buying bits of Yahoo here, not all” of the company. These assets make strategic logic for Daily Mail, but the company is heavily in debt, and they would have to join with some big players to get a sniff of these assets.”
Other potential buyers
Yahoo is auctioning its core internet business including search, mail and news websites, and also considering selling its non-core assets worth up to $3 billion. The technology company made the move amid pressure from Starboard Value to drive growth and enhance shareholder value.
It was recently reported that Microsoft Corporation (NASDAQ:MSFT) engaged in early negotiations with private equity firms interested in acquiring Yahoo. Time Inc. (NYSE:TIME) is also considering a bid in partnership with a private equity firm. Google is also weighing an offer.
Verizon Communications (NYSE:VZ) is planning to submit its initial proposal for Yahoo’s internet business on April 18. People familiar with the situation said Verizon is willing to purchase the technology company’s stake in Yahoo Japan Corporation (TYO:4689) to sweeten its offer.