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Verizon biggest favourite for Yahoo acquisition

Yahoo should reveal its preferred bidder for the company core assets soon, after receiving final bids on Monday, the media reported this morning.

According to a Bloomberg report, Verizon Communications Inc., Quicken Loans Inc. founder Dan Gilbert and Vector Capital Management are the top three bidders.

Now, Yahoo is expected to request the best, and final bids, from the three, and the final decision is to be made before the end of the month.

The interesting thing is that two of the three companies are not even competing for the same assets. While Gilbert and Vector Capital want to buy Yahoo's core internet business, patents and real estate, Verizon isn't interested in splitting these assets up. While others would probably pick the company apart and use what could be used, Verizon would keep it as a unit - which could align nicely to its AOL properties, also acquired earlier.

According to media reports, Verizon would look to integrate Yahoo in its smartphone and internet ad units, as well as cable TV offerings. With more than a billion people visiting various Yahoo's webistes, we can see why.

That's why Verizon's first bid was somewhat lower - $3.5 billion. The bid is expected to increase, though.

Yahoo was founded in 1994 and was considered a pioneer in the Silicon Valley start-up model. However, over the years, it got run over by other companies, such as Google, Facebook or Amazon. Marissa Meyer, who took over as CEO in 2012, was tasked with stopping the downward spiral and turning the franchise around, but has mostly failed.

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