The telecom giant submitted a $3 billion bid for Yahoo's core media business on Monday, which marked Yahoo CEO Marissa Mayer's deadline for second-round bids, reports the Wall Street Journal. Other first-round bidders, including a number of private equity firms, were expected to submit competing bids in the range of $2-3 billion, according to the Journal.
Analysts believe Verizon is the leading candidate to win the deal because of the strategic value it would derive from combining Yahoo with AOL, which Verizon acquired last year for $4.4 billion. By expanding into digital media, Verizon aims to generate new sources of revenue by layering advertising capabilities over its existing network assets.
"The network will always be the foundation, but if you just do that you're going to be relegated to being a commodity," Verizon CEO Lowell McAdam told Fast Company. "You've got to really build on that foundation in order to be relevant going forward."