Dive Brief:
- Yahoo said it has formed a committee to seek out and engage with potential buyers for its core Web assets.
- The company will likely approach potential corporate and private equity buyers sometime this week, and potentially as early as Monday, according to a Bloomberg report.
- Verizon Communications Inc., Comcast Corp. and AT&T Inc. are among the rumored potential buyers.
Dive Insight:
Activist shareholder and Starboard CEO Jeff Smith has been pushing for a sale of Yahoo's core Internet assets since late 2015, as the company failed to increase sales and saw its stock drop 30%. CEO Marissa Mayer has held out for a turnaround instead.
On Friday, Yahoo said it had hired financial advisors and told board members to explore strategic options as the company works to turn profitable once again.
"The Board is thoroughly committed to exploring strategic alternatives while simultaneously supporting management and the employees in their implementation of Yahoo's strategic plan," said Yahoo Chairman of the Board Maynard Webb in a statement. "We believe that pursuing these complementary paths is in the best interests of our shareholders and will maximize value."
Earlier this month, Yahoo cut 107 jobs at its headquarters and closed five offices. About 1,500 job cuts are expected by the end of March. Yahoo has struggled to keep pace with other Internet search companies such as Google.
