Daily Mail Parent Company Considering Yahoo Bid
Yahoo announced in February that it would seek strategic alternatives.
The list of potential Yahoo bidders is getting a little bit longer.
Daily Mail & General Trust, the parent company of British newspaper The Daily Mail, is considering a bid for the Silicon Valley company.
"Given the success of DailyMail.com and Elite Daily we have been in discussions with a number of parties who are potential bidders," a DailyMail.com representative told The Hollywood Reporter. "Discussions are at a very early stage and that there is no certainty that any transaction will take place. We have no further comment at this time. Further updates will be provided as appropriate."
The Wall Street Journal reported that DMGT is in talks with private equity firms for two potential bids. In one, according to the Journal's unnamed sources, the private equity firm would acquire Yahoo's core business, and the Daily Mail would take over its news and media properties. In another, the Daily Mail's online operations would merge with Yahoo's media and news businesses under a newly formed company.
In addition to its search business, Yahoo operates a number of media sites, including Yahoo Sports and Yahoo Finance. The media business was a large part of CEO Marissa Mayer's turnaround strategy for the company, and she has rolled out several digital magazines powered by Tumblr and backed by star editors. In 2013, Mayer also led Yahoo's efforts to recruit Katie Couric as global news anchor. But as the company has come under pressure from investors, Mayer has pulled back on the efforts, shuttering video service Yahoo screen, ceasing production of Yahoo original series and closing down several digital magazines.
Yahoo began to explore strategic alternatives, including a sale of its core assets, in February. Verizon and Google are said to be among the companies considering bidding for some of Yahoo's assets alongside a number of private equity firms.
The Daily Mail, meanwhile, has pushed into digital through MailOnline and last year acquired online news brand Elite Daily.
Yahoo shares closed Friday down less than 1 percent to $36.07.