Daily Management Review

Yahoo is selling patents for $ 1 billion


Yahoo Inc. put up for sale a portfolio of about 3 thousand patents, including a patent for the original search technology Yahoo. The company expects to get over $ 1 billion from the sale of intellectual property.

Yahoo Pressebilder
Yahoo Pressebilder
US Internet company Yahoo Inc. put up for sale a patent portfolio, the value of which may exceed $ 1 billion, according to The Wall Street Journal referring to informed sources. According to the publication’s companion, we are talking about approximately 3 thousand patents that the company has received since its inception in 1996, including patent on the original search technology Yahoo.

In recent weeks, Yahoo has sent letters to some potential buyers of patents, said one of the newspaper’s interlocutors, without giving specific names of companies.

The auction will be held by investment bank Black Stone LP, specializes in conducting such trades. Yahoo is taking preliminary bids from potential investors until mid-June.

Yahoo’s representative (their name is not specified) confirmed that the company is considering sale of about 3 thousand patents, and is waiting for proposals from potential buyers. "This is a unique opportunity for Internet companies to buy some of the basic patents in the field of search and advertising on the Internet," - he said.

Yahoo is preparing to sell its core business, related to the Internet. Earlier, it was reported that the US telecommunications company Verizon Communications offered almost $ 3 billion. The company voiced interest in buying Yahoo’s assets in December last year. There are over 1 billion users of e-mail, financial, sports and video services of Yahoo,. As Bloomberg notes, the web traffic, in conjunction with the exclusive content, will enable Verizon (the largest cellular operator in the US) to gain a foothold in the video advertising market.

In late April, experts surveyed by Bloomberg predicted that Yahoo’s Internet business can be sold for $ 4-8 billion. As the WSJ says, the price offered by Verizon Communications is lower than that voiced by experts, since the company does not apply for the purchase of the most precious assets.

In recent years, Yahoo showed significant deterioration of financial indicators. The company completed the first quarter of 2016 with a net loss of $ 99.2 million (or 10 cents per share) versus net income of $ 21.2 million (or 2 cents per share) in January-March last year. Revenues excluding commissions paid to partners decreased year on year by 18%, to $ 859.4 million.

According to the WSJ, the significant reduction in revenue may make potential buyers of Yahoo think whether purchase of the company’s assets is a reasonable step. Meanwhile, Yahoo’s CEO Marissa Mayer during a video conference for analysts called the quarter a good start of the year and quarterly results topped analysts' expectations. 

source: wsj.com

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