One analyst has proclaimed that Yahoo! Inc. (NASDAQ:YHOO) is done as a company and should now close. The analyst told CNBC news that the firm had passed its useful years and its time was over.
He went on to say that ‘from a fundamental point of view, no company would be interested in buying Yahoo, even Microsoft.’ The managing director and senior analyst at Global Equities Research, Tim Chowdhry, was speaking on CNBC’s show “The Rundown.” He said, “I think Microsoft will participate with any private equity firm or whoever wants to buy Yahoo so that they maintain their influence…and continue to provide its Bing search on Yahoo properties.”
Chowdhry, however, added that he did not see Microsoft itself buying the search directory company. Last week reports indicated that Microsoft was interested in giving potential and prospective buyers financial backing.
Yahoo! Inc. (NASDAQ:YHOO) and Microsoft Corporation (NASDAQ:MSFT) have been partners since 2009, and their contract which was amended in 2015 states that Microsoft will pay Yahoo any revenue they get from Yahoo searches.
Back in 2008, Microsoft bid to buy at a price of $45 billion. The initial offer was declined and so to was the second offer which Microsoft upped by approximately $5 billion before they eventually withdrawing their attempts to buy the company. Microsoft saw search directory company as a formidable partner in its bid to compete against Google, its search rival.
The company has been in the spotlight in the last few months, and its CEO, Marissa Mayer has come under fire for the underperformance of the company with some activists advocating for her dismissal. Chowdhry, however, does not encourage changing management. “You bring in another set of strategies, which are doomed to fail,” he says.
Another company that might make a bid to buy according to Chowdhry is Alibaba. Yahoo has a stake in the prominent Chinese founded e-commerce firm. The stake in the company is valued at $24 billion.
The Wall Street Journal reported that buyers who were interested in Yahoo and its subsidiaries had been given two weeks to submit preliminary bids. The paper, which cited unnamed sources, said that Yahoo had recently sent a letter to its investors asking them to notify the company of the assets they hoped to buy, the price tag that they expected and how they would finance the purchase of the assets.