Private equity firm TPG and digital advertising company YP (formerly Yellowpages) are among the bidders for Yahoo’s web operations, writes Bloomberg, citing people familiar with the matter. The two companies are in competition with Verizon, which sees the move as a strategic investment and is thought likely to want to combine Yahoo’s online businesses with AOL. On the other hand, private equity buyers like TPG often look to cut costs and improve operations before selling companies off or merging them with other assets.
YP is reportedly working with Goldman Sachs to consider strategic alternatives for Yahoo’s assets, which could including buying smaller firms or undertaking a “Reverse Morris Trust”, a tax-free transaction whereby YP would merge with a spun-off Yahoo subsidiary, one person said. Yahoo, Verizon, TPG and YP all declined to comment.
