Daily Mail Joins Yahoo Bidding Queue

...


ManageEngine OpManager, a powerful NMS for monitoring your network, physical & virtual (VMware/ HyperV) servers & other IT devices. Deploy and start monitoring in less than an hour. Trusted by over a million admins world-wide. Try it for free.

The parent company of British tabloid the Daily Mail apparently has entered what's shaping up as frenzied round robin bidding war for Yahoo, a firm that long has worn the mantle of a technology relic incapable of exciting interest.

The Daily Mail & General Trust on Monday confirmed a report that it has approached private equity companies on a possible joint bid for the firm.

"Given the success of DailyMail.com and Elite Daily we have been in discussions with a number of parties who are potential bidders," a Daily Mail spokesperson said in a statement provided to the E-Commerce Times by company rep Sean Walsh. "Discussions are at a very early stage and there is no certainty that any transaction will take place. We have no further comment at this time. Further updates will be provided as appropriate."

Yahoo reportedly has held discussions with Verizon, IAC/Interactive Corp. and CBS Corp., according to the WSJ, but has not yet sat down with Daily Mail executives. Verizon, whose CEO confirmed interest in acquiring Yahoo's core Web business several weeks ago, is widely seen as the leading candidate to pull off a deal.

Yahoo has extended the deadline for receipt of first-round bids from April 11 to April 18, according to reports.

The Daily Mail is the latest surprise entrant in the contest. Its bid could take the form of one or two potential deals, the WSJ noted.

In one scenario, the private equity partner would take over Yahoo's entire U.S. operation and fold the news and media properties into the Daily Mail. The second scenario would have the private equity partner take control of Yahoo and fold its news and media companies into a new firm, which would include DailyMail.com and Elite Daily.

The Daily Mail has been in talks with a half-dozen private equity firms on making a bid, including General Atlantic, according to the WSJ.

Despite Yahoo's difficulties as a legacy company, there remains a strong core of Web traffic that might attract traditional media company like the Daily Mail, observed Rick Edmonds, media business analyst at Poynter.

"Say what you will about Yahoo,they remain a leader in basic traffic," he told the E-Commerce Times. "The rap on the company is that they cannot come up with a growth strategy or carve out a distinctive journalistic role."

The Daily Mail claims about 62 million unique visitors per month in the U.S., citing Comscore data from July 2015.

Yahoo reaches nearly 78 million people per month, making it the ninth biggest website in the country, according to Quantcast.

Yahoo has beefed up its content business over the years, luring major media figures like former CBS anchor Katie Couric, who is global anchor at Yahoo, and former Newsweek investigative reporter Michael Isikoff, who is now the company's chief investigative correspondent.

"The news and financial features are good and what makes Yahoo attractive to media companies," said Michael Jude, consumer communication services research manager at Stratecast/Frost & Sullivan.

Yahoo's once-leading search engine probably would be folded into another entity, as it is not what it used to be before Google emerged as a leading search provider, he added.

However, the likely scenario is that whichever company acquires Yahoo, it will wind up with the company largely intact, Jude suggested, because the individual parts by themselves are not as attractive.

"What exactly is Yahoo these days? A media company, a personal destination page, a news source, a 22-year-old startup?" asked Kevin Krewell, principal analyst at Tirias Research.

"A case can be made for all of these and none of these," he told the E-Commerce Times.

Defining what Yahoo's mission actually is has "stymied its management since the leadership of cofounder Jerry Yang, and therefore made the company both malleable and cast hard," Krewell said.

"Each potential buyer can see it in their own light, but whichever company does get Yahoo will try to mold it to a new owner's whims," he predicted. "It will be hard, and some things will break, and some parts will be sold off."

Yahoo will have no comment on the deal process, spokesperson Rebecca Neufeld told the E-Commerce Times -- either regarding the Daily Mail specifically or in general.

David Jones is a freelance writer based in Essex County, New Jersey. He has written for Reuters, Bloomberg, Crain's New York Business and The New York Times.

Categories
Guide
0 Comment

Leave a Reply

Captcha image


RELATED BY

  • 5300c769af79e

    Google's Sundar Pichai: Our AI Beats Competitors' AI

    However, Pichai expressed confidence that Google will be able to fend off the competition when it comes to Amazon and Apple.But Pichai isn't out to destroy Google's competitors.
  • 5300c769af79e

    9 Java Programming Myths Busted

    Here, we bust up nine of the most prominent myths surrounding this widely used programming language.In spite of this, there are many persistent myths about the language, even among those who use Java daily.
  • 5300c769af79e

    Report: FTC Extends Google Android Antitrust Probe

    The Federal Trade Commission has reportedly extended its probe into Google's Android business.At issue is Google's policy of requiring phone makers releasing Android devices to either bundle all or none of Google's apps (Chrome Browser, Google Play, YouTube, etc.
  • 5300c769af79e

    Tomb Raider Now Available on SHIELD TV Natively Via Google Play

    The Tomb Raider title from 2013, which is the Lara Croft origin story, is now natively available on Android, exclusive to the NVIDIA SHIELD TV.This port of Tomb Raider consists of the same environmental puzzles, combat experience, and tombs to discover, but given it is now on Android, players can also expect to find Google Play Achievements and cloud saves with a Google Play Games sign-in.