Quicken Loans founder and chairman Dan Gilbert’s bid is backed by Warren Buffett, Bloomberg reported. Gilbert is working with former Yahoo executives and believes the struggling internet company can be a good investment with new management, a source told the news agency. Rumors first arose that Gilbert and Buffet might team to buy Yahoo last month
Gilbert is vying for Yahoo even as the Department of Justice accuses Quicken Loans of submitting claims for hundreds of improperly underwritten FHA
-insured loans. It’s a charge Gilbert and Quicken Loans CEO Bill Emerson have vowed to fight
“For us, it’s not something we can even begin to stomach,” Emerson said on CNBC’s Squawk Box last month
. “To look our 12,000 team members in the eye and say, ‘Guess what, we committed fraud against the United States government … we didn’t. We won’t say it.”
The head of Quicken Loans has reportedly bid $5 billion for Yahoo’s core business, patents and real estate assets, according to Bloomberg. AT&T reportedly bid a similar amount.