May 25, 2016, 12:36 P.M. ET
Yahoo!: AT&T Has Made a Bid, Says Bloomberg
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By Tiernan Ray
Shares of Yahoo! (YHOO) are down $1.01, 2.7%, at $36.52, following a report this morning from Bloomberg’s Alex Sherman stating that AT&T (T) “made a bid for Yahoo and remains a contender to acquire the Sunnyvale, California-based company’s core internet business,” citing multiple unnamed sources.
AT&T had previously indicated it was not interested. Speculation has focused on AT&T’s competitor, Verizon Communications (VZ).
One speculated reason for an AT&T bid, notes Sherman, is for AT&T to use Yahoo!’s ad services in the context of AT&T’s mobile video offering. Another point mentioned by Sherman is AT&T creating a rival to AOL, which Verizon bought last year.
AT&T shares are up 2 cents at $38.52.