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Daily Mail and General Trust considering Yahoo bid

Daily Mail and General Trust (DMGT) may be interested in making a bid to buy Yahoo after the former tech giant began to approach private equity firms seeking a deal.

Yahoo was one of the few tech companies to remain relevant after the dot-com bubble burst in 2000. Despite its market value of $38 billion, the company has been unable to compete against Google, Facebook and the other tech companies in recent years. Yahoo is selling its core business and will be accepting bids up until the deadline of 18 April.

The Daily Mail's owner has been in discussions with quite a few parties who may end up being potential bidders as the deadline date become closer. However, these early stage talks may not even end in a deal.

The newspaper may be able to secure a joint deal with private equity that would allow it to take over Yahoo's news service with its publisher taking over control of Yahoo's web business.

DMGT was able to earn £216 million pre-tax in 2015. This year, that number is expected to grow to £269 million by 30 September. Mail Online and Wowcher, along with DMGT's other websites, have increased their advertising revenue strongly while Yahoo has been steadily declining for some time now.

In February, Yahoo was unable to sell off Alibaba and the company's CEO Marissa Mayer announced a cost cutting plan last year that will eliminate 1,600 jobs.

DMGT has the possibility of putting Yahoo's news business to good use should it secure a bid for the company.

Image Credit: Ken Wolter / Shutterstock

Anthony Spadafora
After living and working in South Korea for seven years, Anthony now resides in Houston, Texas where he writes about a variety of technology topics for ITProPortal.