Low Ball Bids Come In As Yahoo Sale Enters Second Phase

Yahoo, the American multinational technology company headquartered in Sunnyvale, California is being auctioned off, but unfortunately the company is not seeing bids high enough to meet their expectations.

Rumored bidding front runner, Verizon Communications, is reportedly offering a bid in the 2-3 billion dollar range, a far cry from the 4-8 billion dollars Yahoo had expected to receive just last month.

Now that the auction of the tech giant is in the second stage it’s possiable that the bidding companies are simply trying to “low ball” their offers to secure the best value for their money.

According to financial analyst Brian Wieser, “the problem is, this business requires a lot of ongoing investment” and this simple fact could be the reason behind the lower than expected offers. Yahoo’s shares dropped in early trading, chipping away at its 11 percent gain this year and with slow growth in nearly every sector you can see why the bids for the tech giant aren’t exactly rolling in with higher values.

Marissa Mayer was hired as Yahoo’s CEO with hopes that she could revive the company, but things just didn’t seem to work out. The growth that she had been hoping for in ads, video, and even mobile has been slowing down significantly.

With the next round of bidding conversations just 2 weeks away Yahoo will have to try very hard to prove its worth to its potential buyers.