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AT&T reportedly wants to buy Yahoo's internet business

May 25, 2016, 20:51 IST

AT&T has made a bid for Yahoo's core internet business, Bloomberg reports, citing "people familiar with the matter."

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The company had initially decided against bidding in April, but has since changed its mind, according to Bloomberg.

This development puts AT&T into competition with Verizon, which is considered one of the likely parties to buy Yahoo's core business.

The bidding price for Yahoo's core business could be in the range of $2 billion to $3 billion, The Wall Street Journal reported earlier this month, which is significantly lower than the $4 billion to $8 billion range a lot of Wall Street analysts were expecting.

Those numbers have been called into question by people like CNBC's David Faber, who called them "completely wrong." Bloomberg reports that Yahoo got 10 initial offers, "ranging from about $4 billion to $8 billion," again citing people familiar with the matter.

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Part of the confusion of the bids could stem from the fact that Yahoo has never defined what exactly it's selling as its "core" business. It could include just online advertising, or things like its web intellectual property, or real-estate property.

"Given there are still multiple bidders, and Yahoo likely is looking for the cleanest way to maximize value, bids for the core may still come in higher than the reported $2 billion to $3 billion, depending on what assets are included in the bids," SunTrust's Bob Peck wrote.

Additional reporting by Eugene Kim.

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