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Will Warren Buffett stand in the way of Verizon Communications ( VZ ) snatching up Web portal Yahoo ( YHOO )? That scenario looms amid reports that Berkshire Hathawa y ( BRKB ) Chairman Buffett is backing a consortium vying for Yahoo’s Internet assets. Quicken Loans founder Dan Gilbert is said to be pursuing Yahoo, with Buffett providing financial backing. Some former Yahoo executives have been advising Gilbert’s group on a bid, tech news website Re/Code reported. Buffett’s Berkshire Hathaway made its biggest-ever acquisition in 2015, buying Precision Castparts, a maker of aerospace components, for $37 billion. However, Buffett has not been a big investor in tech companies, with his large stake in IBM ( IBM ) a notable exception. Berkshire, however, just disclosed that it’s taken a nearly $900 million investment in Apple ( AAPL ) shares. “I’m an enormous admirer of Dan and what he has accomplished in Quicken Loans,” Buffett told CNBC . “Yahoo is not the type of thing I’d ever be an equity partner in. I don’t know the business and wouldn’t know how to evaluate it, but if Dan needed financing, with proper terms and protections, we would be a possible financing help.” Others in the hunt for Yahoo include big private equity firm TPG Capital and a group comprised of investment firms Bain Capital and Vista Equity Partners. Telecom and wireless services giant Verizon has been viewed as the front-runner for acquiring all or part of Yahoo. Verizon, which bought AOL in 2015 for $4.4 billion, aims to morph into a digital media company that garners more advertising revenue, as wireless data competition mounts. Yahoo recently added four new independent directors to its board under pressure by activist investor Starboard Value. While Yahoo CEO Marissa Mayer is in talks with possible buyers, a second round of bidding for Yahoo may not wind up until early June, according to various reports. Scalper1 News
Scalper1 News