Yahoo! Sale Valuation Reportedly Falls to Between $2 Billion to $3 Bilion

The Internet giant could see bids lower than previously expected, a report says.

Author:: Lisa Botter
Publish date:: May 20, 2016 8:33 AM EDT

Yahoo! (YHOO) is expected to receive bids lower than previously expected, according to reports from The Wall Street Journal, as the saga of the Internet giant continues.

Verizon Communications (VZ) - Get Report and others are expected to put in bids around $2 billion to $3 billion in an auction for Yahoo!'s core business, a person familiar with the matter told the Journal. It is said that the company was expecting the business to go for between $4 billion and $8 billion.

Yahoo! has set a deadline for the first week of June for the bids, according to sources.

A series of sale presentations by Yahoo! CEO Marissa Mayer may have led to the lowering of bids. Last month's first-quarter earnings showed revenue had dropped 18% to $859.4 million.

Bidders have apparently had access to a "data room" that holds details about the company's financial performance and prospects in the past couple of weeks,

Shares of Yahoo! fell 5.1% to $35.14 in premarket trading on Friday.