That giant whooshing sound you hear is the value of Yahoo's (yhoo) core business falling.
As recently as April, reports indicated that Yahoo might be sold from anywhere between $4 billion and $8 billion. But after investors were allowed access to nonpublic information and were subject to weeks of sales presentations, the Wall Street Journal is reporting that bids will come in much lower—between $2 and $3 billion, citing "people familiar with the matter."
According to the report, Yahoo "has set a deadline for the first week of June ... though it isn’t clear whether that will be the final round or if another one will follow."
Fortune has reported that there is a core group of companies, with Verizon (vz) in the lead, which are serious about acquiring the storied dotcom brand. The auction got a bit more interesting, when Reuters reported that Berkshire Hathaway’s (brka) Warren Buffett decided to back a consortium of investors, including Quicken Loans founder Dan Gilbert, to buy the firm.
Other potential buyers include private equity firms TPG Capital, KKR, and a team up of Bain Capital with Vista Equity Partners.