UK's Daily Mail circles Yahoo

Staff Writer
Columbus CEO

The owner of Britain's Daily Mail is in early discussions over a bid for the ailing U.S. internet company Yahoo.

The Wall Street Journal first reported Sunday that the media company is speaking with private equity firms about an offer.

A spokesman for the DailyMail.com said that, given the success of that site and Elite Daily, it has "been in discussions with a number of parties who are potential bidders." He said the talks are in a very early stage and there is no certainty any transaction will take place.

Yahoo could not immediately be reached for comment.

The company is under intense pressure to revive its revenue growth and activist investor Starboard Value, a big stakeholder, is pushing for a change in leadership.

Starboard last month said announced its intent to overthrow CEO Marissa Mayer and Yahoo board. It is the third attempted coup at Yahoo since 2008, all led by different shareholders frustrated with attempts to turn the company around.

Starboard nominated nine alternative candidates to oppose Mayer and Yahoo's other directors at the company's annual shareholder meeting in June.

Yahoo's business has declined under Mayer even as advertisers pour more money into digital marketing, with most of it flowing to rivals Google and Facebook.

Shares of Yahoo have fallen about 30 percent since the end of 2014 as the difficulty of reviving company revenue growth has become evident, and that has increased the pressure on Mayer to take more drastic measures.