Yahoo to Report on Earnings, Receive Final Bids for Core Company Buy on Monday


Yahoo is prepping what could be the last earnings release for the company as we know it.

The Sunnyvale, Calif.-based Net media company reports second-quarter earnings after the markets close on Monday. That same day, Yahoo is expected to receive the final bids from those interested in buying its core business, which includes advertising, search and content such as Yahoo Finance, Yahoo Sports and Yahoo Mail.

Yahoo (YHOO) is expected to announce the results of the sale before the end of the month. If one or more bids is deemed acceptable, the company could sell its core business, patents, real estate and other assets. That would leave only its 15% stake in Chinese e-commerce giant Alibaba, which is worth about $31 billion, and perhaps its 36% stake in Yahoo Japan, worth about $8 billion.

Among the reported bidders for Yahoo are AT&T; Verizon; a consortium that includes Warren Buffett’s firm Berkshire Hathaway and Dan Gilbert, founder of Quicken Loans and owner of the NBA’s Cleveland Cavaliers; and private investment firm TPG.

Although some investors are concerned that Yahoo might spurn offers, BGC Financial technology research director and analyst Colin Gillis expects the company “to end the process and complete a sale,” he said in a note to investors Friday. “Yahoo is over in our eyes.”

Despite Monday’s earnings report, “the focus is going to be on the … sale,” said Gillis, who estimates that bids could surpass $6 billion, but expects Yahoo would accept any offer of $5 billion or so. “Anything higher than $7 billion we consider a positive development,” he said.

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SOURCE: Mike Snider