UK's Daily Mail circles Yahoo

AP News
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Posted: Apr 10, 2016 8:55 PM
UK's Daily Mail circles Yahoo

The owner of Britain's Daily Mail is in early discussions over a bid for the ailing U.S. internet company Yahoo.

The Wall Street Journal first reported Sunday that the media company is speaking with private equity firms about an offer.

A spokesman for the DailyMail.com said that, given the success of that site and Elite Daily, it has "been in discussions with a number of parties who are potential bidders." He said the talks are in a very early stage and there is no certainty any transaction will take place.

Yahoo did not respond to a request for comment.

The company is under intense pressure to revive its revenue growth and activist investor Starboard Value, a big stakeholder, is pushing for a change in leadership.

Earlier this year, Yahoo cut 15 percent of its workforce, 1,700 employees, along with branches of the company that CEO Marissa Mayer deemed unworthy of continued support.

It pulled the plug on an online video hub that had once been envisioned as Yahoo's answer to Netflix and YouTube.

Starboard last month announced its intent to overthrow Mayer and the company board. It is the third attempted coup at Yahoo since 2008, all led by different shareholders frustrated with attempts to turn the company around.

Starboard nominated nine alternative candidates to oppose Mayer and Yahoo's other directors at the company's annual shareholder meeting in June.

Yahoo's business has declined under Mayer even as advertisers pour more money into digital marketing, with most of it flowing to rivals Google and Facebook.

Shares of Yahoo have fallen about 30 percent since the end of 2014, increasing pressure on Mayer to take more drastic measures.