AT&T’s Interest in Yahoo May Doom Private Equity’s Buying Hopes
ByAT&T Inc.’s decision to pursue Yahoo! Inc. could be a death knell to efforts by private equity firms hoping to acquire the beleaguered internet company.
The telecommunication giant’s presence puts pressure not just on Verizon Communications Inc. and Quicken Loans Inc. founder Dan Gilbert — backed by Warren Buffett — to raise their offers. It also adds another deep-pocketed strategic company to the mix of bidders for Yahoo’s core web assets.
Private equity firms, which often rely heavily on debt to finance buyouts, realize they would struggle to win a bidding war with well-capitalized acquirers while still generating the types of returns demanded by their investors, according to people familiar with the situation, who asked not to be identified because the information is private…
AT&T’s Interest in Yahoo May Doom Private Equity’s Buying Hopes
