WSJ: Daily Mail aims to buy Yahoo

Would it be a fitting end, for one of the first and greatest of the American web's dreams, to be eaten by the most infamous of British tabloids?

The parent company of the Daily Mail, the British newspaper and global tabloid website, is in talks with several private-equity firms to launch a bid for Yahoo, the people said. ... A possible bid by Daily Mail could take one of two forms, the people familiar with the matter said. In one scenario, a private-equity partner would aim to acquire the entirety of Yahoo’s U.S. operation, with the Mail taking over the news and media properties. Those assets include verticals such as Yahoo Finance and Yahoo Sports plus Yahoo News and a video operation whose big star is Katie Couric. Yahoo has been retrenching in those businesses—in February the company closed seven digital magazines including sites dedicated to food, parenting and health. In the other scenario, the private-equity firm would acquire Yahoo and merge its media and news properties into a new company that would include the Mail’s Web properties, DailyMail.com and Elite Daily, the people said. The Mail would run that business and would get a larger equity stake than under the first scenario.

Yahoo's core business is hard to value because of holdings in successful foreign companies such as Alibaba. At one point, its fortunes were so dire that squinting at it just right made the company seem to have negative value. More recently, an analyst put it at $4.3 billion.