The Daily Mail confirmed Monday that it is negotiating with other suitors — perhaps as many as 10 — to put together a unified bid for one-time internet pioneer Yahoo Inc., a portal that dominated the early development of the worldwide web.
Daily Mail owns and operates two globally popular websites — DailyMail and MailOnline — in addition to its better-known print publications that are suffering from declining revenue.
“We have been in discussions with a number of parties who are potential bidders,” a spokeswoman for the Mail’s parent company, Daily Mail & General Trust, told the Reuters news service.
But a long list of competitors for all or some of Yahoo’s assets are shaping up, including major media companies and some of the biggest names in private equity.
Time Inc and Verizon are thought to be in the mix for the Daily Mail websites, which attract 14 million visitors daily with tabloid-style news.
Daily Mail and General Trust derives a tenth of its $1 billion media revenue from the websites, but that share is expected to grow as print revenues continue to decline..
Revenue from the websites, $104 million in the last financial year, represent a tenth of the group’s consumer media revenue.
Yahoo’s assets – a search engine and email, news and sports services – would be a major boost to the media company’s online reach and digital ad revenues.
Ian Whittaker, an analyst for the British investment bank Liberum, said buying some or all of Yahoo would help Daily Mall increase earnings in the United States, a key international market.
“The U.S. has been the main driver of digital growth for Daily Mail & General Trust, whilst traffic has grown well they haven’t quite monetized this traffic as successfully as they would have liked,” Whittaker said.
Complicating matters for the U.K. company, Daily Mail & General Trust also is undergoing a major management change as CEO Martin Morgan retires after eight years.
Companies expected to join the bidding for Yahoo include Blackstone Group, KKR & Co., TPG Capital, Apax Partners, Warburg Pincus, Bain Capital and Hellman & Griedman, Reuters said.
Bids are due April 18, the news service said.
