×

Yahoo whipsaws after report of possible Verizon, Google bids

Chief Revenue Office of Yahoo Lisa Utzschneider, Senior Vice President of Yahoo Simon Khalaf and Principal Technologist at Nasdaq Mike Viola pose while Yahoo!, Inc rings The NASDAQ Opening Bell at NASDAQ on August 26, 2015 in New York City.
Getty Images
Chief Revenue Office of Yahoo Lisa Utzschneider, Senior Vice President of Yahoo Simon Khalaf and Principal Technologist at Nasdaq Mike Viola pose while Yahoo!, Inc rings The NASDAQ Opening Bell at NASDAQ on August 26, 2015 in New York City.

Shares of Yahoo whipsawed Thursday after news that Verizon would move forward with a bid for the tech giant.

Mobile carrier Verizon is evaluating an offer for as soon as next week, sources close to the situation told CNBC. The bid could keep Yahoo's web business and Yahoo Japan together, Bloomberg initially reported.

Verizon values the core at less than $8 billion, according to the Bloomberg report.

Verizon declined to comment to CNBC.

In February, Verizon chairman and CEO Lowell McAdam said Yahoo could fit under the AOL umbrella "at the right price." McAdam explained the company's interest to Jim Cramer of CNBC's "Mad Money" at the time.

Yahoo is in the midst of spinning off its core business as it looks to part with its stake in China's Alibaba. As sales tumble in Yahoo's web-based services, the company has already started slashing costs under the scrutiny of activist investors.

"Yahoo is under so much pressure with [investors] Starboard that they're going to have to go all the way through the bidding process with multiple parties so the board can say 'We went to all the players and got the highest bid,'" the source told CNBC.

A source told CNBC it's unclear who the other bidders could be, but Bloomberg names suitors such as Time Inc., private equity funds like Bain and TPG, and Alphabet's Google.

Technology blog Re/code cast doubt on Google's involvement. Google declined to comment to CNBC.

Competitors AT&T, Comcast and Microsoft aren't mulling an offer, Bloomberg said.

— Reporting by CNBC's Julia Boorstin, Jim Forkin, and Mary Catherine Wellons.

Disclosure: Comcast is the parent company of NBCUniversal and CNBC. CNBC has content-sharing agreements with Re/code and Yahoo Finance.