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Bids for Yahoo projected to be below estimates 23/05/2016 11:43

Suitors are expected to bid around USD 2 billion to USD 3 billion in the auction for Yahoo Inc.’s core business.

Verizon Communications Inc. is said to be the favourite in a field that includes private-equity buyers, some of whom are expected to bid in the low end of that range, the people said. As recently as April, media reports said Yahoo’s core business would likely go for between USD 4 billion and USD 8 billion.

Yahoo has set a deadline in the first week of June for the next round of bids, media reports said. It’s not clear whether that will be the final round or if another one will follow, reports said.

Bidders have lowered their expected prices following weeks of sale presentations by Yahoo Chief Executive Marissa Mayer at the company’s Sunnyvale, California, headquarters and its disclosure of data that detailed the company’s flagging prospects.

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