The publisher of Sports Illustrated, People, and Time magazines is considering a deal to buy the core assets of the troubled internet company. Bobbi Rebell reports.
Time Inc. may getting a bid ready for Yahoo's core business. A Reuters' source also says the company has been reaching out to bankers. The attraction? Likely Yahoo's nearly one billion users and the advertising opportunities that come with them. Last week Yahoo launched an auction for its core business- which includes its search, mail and news sites, largely to appease frustrated investors and avoid a proxy fight. It previously shelved plans to spin off its stake in China's e-commerce giant, Alibaba. Time, which publishes People, Sports Illustrated and Time magazine among others, has seen advertising dollars dry up in recent quarters. It has been trying to boost its digital presence. Time could leverage Yahoo's assets according to Manhattan Venture Partners Max Wolff: SOUNDBITE: MAX WOLFF, CHIEF ECONOMIST, MANHATTAN VENTURE PARTNERS (ENGLISH) SAYING: "The combination with Time really is about bringing cool assets together and trying to get a second act and make them more profitable. And it's a little bit of a value play with a tax advantage." The deal would be potentially structured as a tax-free deal where one company merges with a spun off-unit, according to Bloomberg. Wolff points out that in addition to those billion users, Yahoo still has a strong global brand, along with very successful news, sports and finance sites. Verizon has already expressed interest in Yahoo's core business. It owns internet pioneer AOL. Time Inc. declined to comment.