Some of the biggest tech giants are keeping a close eye on Yahoo’s patent portfolio that could be worth as much as $4 billion, according to the New York Post.
The report said that companies like Microsoft, Amazon, Salesforce, and LinkedIn have been closely following Yahoo’s sales process because they realise the intrinsic value of the company’s massive patent portfolio, which includes 6,000 intellectual properties in the field of mobile, data, and advertising technology.
Yahoo’s patent portfolio could draw between $3 billion to $4 billion in value, the report added, citing unnamed “intellectual property experts.”
So far there haven’t been any bidders interested in just buying the patent portfolio alone, as Yahoo has been unclear about which patents it’s planning to sell as part of the core business, the report added. Yahoo said in its latest earnings that selling its non-strategic assets, including non-strategic patents and real-estate, could generate as much as $3 billion in cash.
It also noted that private equity firms have been secretly calling, as they don’t want others to know about it. If Yahoo could find a way to unlock the value in its patent portfolio, shareholders could end up with potential goldmine they didn’t see coming.
The report comes on the heels of a Re/code article that said the company projects a 15% decline in revenue this year. It said the company expects to spend roughly $1 billion on traffic acquisition costs, which will bring its earnings before depreciation, taxes, and amortization down to $750 million this year.
Yahoo is currently in hearing bids for its core internet business. Potential buyers will have to make their bids by April 11, according to the WSJ. Some of the most frequently mentioned potential buyers are big communications companies like Verizon and AT&T, and private-equity firms like TPG and KKR.
Disclosure: Jeff Bezos is an investor in Business Insider through hispersonal investment company Bezos Expeditions.