Verizon is the lead bidder in deal to buy Yahoo

Yahoo has remained the subject of acquisition speculation as its profits continue to decline.
Written by Natalie Gagliordi, Contributor

Verizon is said to be nearing a deal to acquire Yahoo, Bloomberg reported on Friday.

Naturally, neither company is commenting on the speculation, but Bloomberg said an announcement might come in the next several days. In June, Verizon was said to have entered the second round of bidding for the internet company, with an offer of approximately $3bn.

Yahoo has remained the subject of acquisition rumors as its profits continue to decline. The company began soliciting bids five months ago.

Last quarter, the company said it would cut 15 percent of its workforce in an effort to return to growth over the next two years.

In its most recent earnings report this week, Yahoo said it had to write down $482m in charges related to Tumblr. Yahoo acquired the social-blogging service for $1.1bn in 2013, but its value has plunged by almost two-thirds.

Yahoo CEO Marissa Mayer said little about a possible sale on Monday -- the deadline for final offers -- but told investors the company is still evaluating bids.

The deal would make sense for Verizon, which has built up the infrastructure, an ad network, and a content platform that could benefit from Yahoo's core internet business.

Verizon snapped up AOL last year in a deal worth $4.4bn.

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