Yahoo may fetch much less than early bids

Bids for Yahoo's core internet business might be much lower than the company or its shareholders hoped for.

The Wall Street Journal reported on Thursday that the favourite in the ongoing confidential auction process, Verizon (VZ), and several other bidders would be expected to place offers of $2 billion to $3 billion in the second round of bids.

Only a month ago, before the deadline for the first round of bids, analysts had speculated that Yahoo's core internet business - including assets such as its advertising and search business, Yahoo Sports and Tumblr could fetch $5 billion to $8 billion (See: Yahoo considering selling its web business: report ). However, bidders had lowered their offers after seeing presentations from Yahoo CEO Marissa Mayer and learning more about the Sunnyvale, California-based company's outlook, according to the Journal, which cited people close to the process.