Daily Mail eyes Yahoo bid to consolidate online success

Daily Mail eyes Yahoo bid to consolidate online success

Daily Mail eyes Yahoo bid to consolidate online success

The Wall Street Journal outlined two possible forms such a bid could take. The Daily Mail, a British tabloid and newspaper dedicated primarily to celebrity news and gossip, confirmed that it has thrown its hat into the ring to bid on the assets of the USA digital media group. These assets include verticals such as Yahoo Finance and Yahoo Sports plus Yahoo News and a video operation whose big star is Katie Couric.

Daily Mail has spoken with a half-dozen U.S.-based private-equity firms and a bid would only be made in conjunction with a partner, said the person, who asked not to be named because the plans are private.

Its parent company Daily Mail & General Trust said its interest stems from the success of DailyMail.com amd Elite Daily.

In the second, the private equity firm would similarly acquire Yahoo's entire core web business, but the Mail would just take over the news and media properties, without forming a new company and the DGMT would have a smaller equity stake.

Yahoo CEO Marissa Mayer, who took over in 2012 with the mission of boosting growth, is in an increasingly hard position.

Liberum analyst Ian Whittaker said a deal with Yahoo would be positive for the company, helping it sell more USA advertising and reducing its dependence on shrinking advertising sales from its newspaper business in Britain.

"Discussions are at a very early stage", a representative for Daily Mail said Monday in an e-mailed statement.

At the time it was put up for sale Yahoo created an independent committee to "explore strategic alternatives". Last week, Yahoo pushed the deadline for bids back by a week from April 11 to April 18.

On Friday, Yahoo shares closed with less than one percent drop at $36.07.

It is understood that it is seeking a link up with a private equity firm that would takeover Yahoo whereby the publisher would then look to takeover the new and media properties.

But despite falling out of fashion, it still attracts around 210 million visitors every month in the USA alone.

Yahoo, once an early competitor in the internet search market, has experienced rough times, changing CEOs and pivoting its business strategy.

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