AT&T has submitted a bid for Yahoo and remains active in the auction of Yahoo's core internet business, according to a new report from Bloomberg. AT&T's interest in Yahoo puts the company directly into competition with Verizon, which is also reportedly bidding on Yahoo's business and reportedly remains the frontrunner.
Yahoo has reportedly received roughly 10 offers ranging from $4 billion to $8 billion for its core internet business, according to Bloomberg, in an auction of the company's business that remains ongoing. AT&T initially wasn't interested in Yahoo but has since submitted a bid for the company's business. Other bidders reportedly include entities backed by the likes of Warren Buffett and Bain Capital.
AT&T may be interested in Yahoo as a way to bolster its forthcoming DirecTV streaming video service. The carrier has promised to release later this year DirecTV-branded pay-TV offerings that will be available in a variety of configurations, including a free tier. Already, AT&T purchased Quickplay as part of its DirecTV efforts. Yahoo, particularly the company's advertising business, may fit into a broader strategy by AT&T to increase its advertising technologies and offerings.
Indeed, that appears to be Verizon's same strategy for Yahoo, following Verizon's purchase of AOL and mobile ad company Millennial Media. Article