Buffet wants a Yahoo smorgasbord

WarrenBuffett1Berkshire Hathaway Chairman Warren Buffett is backing a consortium vying for Yahoo internet assets.

While there is no certainty that the consortium succeed, the fact that Buffett is interested is a much needed boost for the troubled Internet company.  It is also bad news for the US telecommunications carrier Verizon Communications which is the current favourite. Verizon already owns AOL.

The consortium is in the second round of bidding in the auction for Yahoo’s assets, the people said. Buffett is helping finance the offer, one of the people added.

Reuters reported last month that Yahoo had shortlisted close to 10 bidders in the auction for its assets, with most offers coming from private equity firms.

Last month Buffett admitted that Berkshire had been slow to adapt to new technology as far as its investments were concerned.  He is a long term investor in IBM so knows all about lost causes. He said that Yahoo’s business had deteriorated significantly and that “something has to change there.” At the time he did not say he was doing anything about it.