Verizon Communications and other bidders for Yahoo’s core business are expected to offer between $2 billion and $3 billion. The former internet giant was originally hoping to receive been $4 billion and $8 billion.
Verizon is considered the front-runner in the bidding process, which also includes private-equity buyers.
In April, people close to the process said the company could fetch up to $8 billion.
Yahoo is accepting bids until the first week of June for the next round of bids, sources close to the process have said. It’s not clear if that round will be the last for the company.
Yahoo Chief Executive Marissa Mayer has spent weeks presenting the company’s core business to potential buyers. Those presentations included a disclosure of data that detailed the company’s flagging prospects.
Other bidders included in the process include buyout firm TPG and an investor group that includes Bain Capital, Vista Equity Partners and former Yahoo CEO Ross Levinsohn. It’s also believed that Dan Gilbert, the Detroit investor and founder of Quicken Loans, is in the mix and may be backed by billionaire investor Warren Buffett.
Bidding may have slowed after last months financials report showed a drop of 18% to $859.4 million, excluding commissions paid to search partners. That’s the first time that figure has fallen below $1 billion since Marissa Mayer took over at Yahoo four years earlier.
Potential buyers have in recent weeks had access to a “data room” with nonpublic details about the company’s financial performance and prospects.
Marissa Mayer has acknowledged that the company is still right in the middle of her turnaround plan.