Market Insider

Yahoo falls as suitors expected to pitch low-ball offers for core assets

Faber: Reported bids for Yahoo are 'wrong'

Shares of Yahoo fell more than 1 percent on Friday as suitors for the tech company's core business are reportedly willing to pony up less cash than expected.

The Wall Street Journal reported Thursday night that Verizon Communications — considered the front-runner to buy Yahoo's core business — and others are expected to bid about $2-to-$3 billion.

Both firms declined to comment.

Yahoo signage at their headquarters in Sunnyvale, California.
WSJ says bids to acquire core business of Marissa Meyer-led Yahoo may be lower than expected

Yahoo has been under pressure recently to sell its core business, especially from activist hedge fund Starboard Value, run by Jeffrey Smith.

On April 27, Yahoo announced it added four new directors — including Smith — to its board in a settlement with Starboard.

Entering Friday trading, Yahoo shares had gained more than 11 percent in 2016, but had lost nearly 13.5 percent over the past year.

YHOO 12-month chart

Source: FactSet