Brian Wieser, senior research analyst at Pivotal Research Group, said the entry of potential new bidders has not changed his outlook on the sale process. There are dozens of companies that can both plausibly claim they can run Yahoo's core business better and raise the capital necessary to follow through with a bid, he told CNBC's"Squawk Box."
However, the Yahoo board's expectations in regards to what the current management can accomplish might cause them to put such a high valuation on the company that no one can pay what it is seeking, he added. In that case, nothing may get done unless a turnover of the board occurs.
There is certainly value in Yahoo, but the question is how much, Wieser said.
"It's possible that there will be a so-called dumb buyer who will overpay massively and will cause the board to have to pay attention," he said. "I think the disciplined buyer will know that this is hard and the business is not worth very much."
Wieser values Yahoo's core business, excluding the company's cash on hand, at about $3 per share, or roughly $2.5 billion. He said he expects Yahoo will have to spend about $800 million per year to achieve a "teeny, tiny bit of growth."
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