Another bidding will be done in June. Yes, you heard it right. The internet business of Yahoo’s shared the news that bidding will be done.
Yahoo is down 2.4% (better than the 6% decline it was tracking premarket) after last night's report that bids for the Internet pioneer's core business are coming in lighter than expected, at $2B-$3B.
CNBC’s David Faber said the sources that it’s completely wrong to bid and said that “Nobody has seen numbers of that type and fairly robust auction"
Last month, Yahoo reported that in Q1 it generated a net loss of $99.2 million versus a net gain of $21.2 million in the period previous year, on revenues of $1.09 billion, down 11.3%.
Yahoo might be worth a whole lot less than anyone thought. That part of the business is generating roughly $300 million in earnings before interest, taxes, depreciation
The core business has more than $600M in EBITDA, including the losing parts, which would make for a very low multiple at $2B-$3B,
Nowadays people are using google rather than yahoo.