The owner of the Daily Mail newspaper is considering a bid for Yahoo’s news and media business.
According to the Wall Street Journal, the Daily Mail and General Trust (DMGT) has held discussions with several private equity firms to partner on an offer. However, although a spokesman confirmed the reports, he said that discussions were ‘at a very early stage’ and there was no certainty a deal would take place.
Now, many of you probably know the Daily Mail as a bubbling stew of xenophobia and celebrity gossip, and so are wondering what the heck it wants to do with Yahoo. The DMGT, however, is actually a conglomerate with a portfolio that pulls in annual revenue of almost £2bn. As well as the Daily Mail and the Mail Online, its media holdings include The Mail, Metro, and Elite Daily (which it acquired for a reported $47 million last year). The move would significantly grow DMGT’s US business, so its little wonder the company is currently in talks with a number of private-equity firms.
Unhappy with Marissa Mayer’s direction, Yahoo’s shareholders are currently looking for someone to turn the company around. The company has set April 18th as its final day for primary offers, which might give it time to keep disgruntled activist investor Starboard Value from trying to replace its board with its own candidates. So far, around 40 companies are reportedly interested in bidding for Yahoo’s assets and have already signed non-disclosure agreements.