Yellow Pages parent company to bid for Yahoo (Report) – The Hollywood Reporter
Yahoo could soon belong to PJ Holdings, until recently the owner of the iconic Yellow Pages, the massively thick phone book that was delivered free of charge to the doorstep of the United States every year.
Yahoo is looking for a buyer for some or all of its assets and offers are expected by the end of Monday. Verizon is said to be among the more serious bidders and now the owner of Yellow Pages is also, according to Bloomberg,
PJ, which now owns Yellowpages.com and several other digital assets, is 53% owned by Cerberus Capital Management and 47% by AT&T through a 2012 deal that valued the company at $ 1.5 billion.
Yahoo’s market cap on Monday was $ 34.6 billion, although analysts believe that once its stakes in Yahoo Japan and Ali Baba are stripped, the rest of Yahoo is worth $ 5 billion, maybe less, and that’s the game PJ could bid.
Bloomberg says PJ may want to acquire Yahoo through a “Reverse Morris Trust”, which would make the transaction a tax-free transfer of assets.
Yahoo, led by CEO Marissa Mayer, had tried to turn the tide in recent years, but said nearly two months ago it would explore “strategic alternatives” for the company.
It was not clear on Monday whether Daily Mail & General Trust, owners of the UK newspaper Daily mail, was submitting a bid, with observers saying a possible game would most likely come with partners. A spokesperson declined to comment.
A spokesperson for Verizon also declined to comment, but bankers said the company was one of the few locks in the auction.
Among the private equity firms that hang out at auctions to study an offer, possibly with strategic partners, are TPG Capital city, KKR and Silver Lake Partners.
Meanwhile, a source said Time Inc. decided not to make an offer for Yahoo, a once-dominant search company that all but invented online advertising. A company representative was not available for comment, but a Wall Street source said the company behind magazine brands such as Weather, Weekly Entertainment, People and Illustrated sports had felt that Yahoo’s financial trends made a turnaround difficult.
It is unlikely that AT&T, Comcast, CBS, 21 Century Fox and a few others who had launched tires on Yahoo will actually submit bids before Monday’s deadline, according to insiders.