Verizon is close to acquiring Yahoo, according to a report from Bloomberg.
Bloomberg reports that Verizon is in “one-on-one” talks with the search giant to acquire the company and that an announcement could come in days.
Bloomberg’s report indicates a deal price of about $5 billion, which Recode has also confirmed. This deal would exclude Yahoo’s patent portfolio — Verizon instead wants to add Yahoo’s internal assets to AOL, according to Recode.
CNBC reports that Yahoo’s real estate is included in Verizon’s bid. CNBC’s David Faber added that a deal could take six to nine months to close.
Yahoo shares were up about 0.4% in early trading Friday after the news. Verizon shares were up 0.5%.
Earlier this week Yahoo reported second-quarter earnings in what was widely seen as CEO Marissa Mayer’s last report at the head of the company.
Yahoo missed on profits but beat expectations on the top line, though Wall Street wasn’t much interested in the company’s core results, as most of the focus around the company in recent months has been on its looming sale.
Mayer told investors the company had made “great progress” in pursuing strategic alternatives.
The company formally launched the process of selling its core business back in February. Final bids for the company’s core business were reportedly due this past Monday.
The auction attracted a diverse array of bidders including the Japanese online retailer Rakuten and the Yellow Pages owner YP, which is backed by AT&T, Reuters reported in April. Several private-equity firms also made early bids.
Exactly what bidders had sought varied, with reports earlier this week indicating that bids for Yahoo ranged from $4 billion to $6 billion depending on whether patents and real estate were included.
Verizon, along with Quicken Loans founder Dan Gilbert and Vector Capital Management, had been seen as the three favourites to acquire the company, Bloomberg’s Alex Sherman reported.
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