Verizon takes over Yahoo

V

viktor_k67

Verizon takes over Yahoo:
http://www.msn.com/en-ca/news/money/verizon-is-winner-in-dollar48-billion-yahoo-sale/ar-BBuOiDv?ocid=ansmsnmoney11

It looks like Verizon acquisition of Yahoo did inspired neither Yahoo nor Verizon investors, Both stocks are down. Yahoo is actually second strongest declining stock (after Liberty ventures) in the Nasdaq 100 index today:
http://www.marketvolume.com/heatmap/stocks.asp?s=NDX

Why investors are not considering this as good deal? Or they are just do not care about it and after post-Brexit rally, they just take profit....
 
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I don't consider it a particularly good deal for Verizon. I think even paying $0 for that trainwreck would be overpaying. I surmise Verizon just doesn't want their business to be relegated to just being a "dumb pipe", but I think buying a clickbait-ad-platform (e.g. Yahoo) is not the right way to go about it.
 
Endgame for Yahoo (Marissa Wins)

Yahoo's board has agreed to sell its legacy businesses to Verizon for $4.8 billion, less than 4% of the company's peak valuation at the time of the dot-com boom. Around $1.8 billion of that appears to be attributed to the company's real estate. The Wall Street Journal said Marissa Mayer, who has led the company through its last years of independence, stands to make more than $50 million in compensation if she is terminated as a result of the sale, adding to the $100 million she has already been given in cash and equity. A $625 million write-down on Tumblr, the blogging site that Mayer bought for $1 billion in 2013, had been the main reason for the $439 million second-quarter loss that the company announced last week. Fortune


John Arnold ‏@JohnArnoldFndtn 18h18 hours ago
Verizon reminds me of when Vivendi's management decided it would be more fun to run a media firm than a water company. Executive hubris.

John Arnold ‏@JohnArnoldFndtn 20h20 hours ago
i give Verizon 24 months before they start writing down the value of the Yahoo assets.
 
viktor_k67 said:
Verizon takes over Yahoo:
http://www.msn.com/en-ca/news/money/verizon-is-winner-in-dollar48-billion-yahoo-sale/ar-BBuOiDv?ocid=ansmsnmoney11

It looks like Verizon acquisition of Yahoo did inspired neither Yahoo nor Verizon investors, Both stocks are down. Yahoo is actually second strongest declining stock (after Liberty ventures) in the Nasdaq 100 index today:
http://www.marketvolume.com/heatmap/stocks.asp?s=NDX

Why investors are not considering this as good deal? Or they are just do not care about it and after post-Brexit rally, they just take profit....
More...

VZ is prob related to broad market. YHOO is arbitrage related.
 
viktor_k67 said:
Verizon takes over Yahoo
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Well, somebody had to, eventually?

The huge price surprises me. I certainly won't be at all surprised if that turns out to be a financial disaster for them, in the long run.
 
Baron said:
Let me guess. VZ will be writing down the overinflated price they paid for YHOO within a year or two. :banghead:
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I think in 3 or 4. -- maybe 5, absolute tops.
:banghead::confused:
I always cringe, when companies buy/acquire another...for what seems like a silly crazy valuation amount.
But hey, they're smart...they know what they're doing, right...
 
Who says that it's a bad idea? As for me, it's good and promising deal. I just wonder whether Yahoo will exist as a separate brand.
 
viktor_k67 said:
Why investors are not considering this as good deal? Or they are just do not care about it and after post-Brexit rally, they just take profit....
More...

Verizon probably still overpaid... and for Yahoo itself... it's a break-up/sell-off sale. Market Cap is 36 Bln, so when they get the core for 4.8,... what's left? Alibaba stake, Yahoo Japan and some intellectual property... which might not be worth a lot on it's own. So, what's Alibaba and Yahoo Japan worth? And what about their debt...?

And then... it's a typical "Buy the Rumour, Sell the Fact/News" thing...
 
Jamie J. said:
Who says that it's a bad idea? As for me, it's good and promising deal. I just wonder whether Yahoo will exist as a separate brand.
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I guess yahoo and AOL services will be joined together under a new name.

Biggest value is traffic and advertisement. At this moment all mobile Verizon users are mostly hammered by adds from Goggle AddVords. Mobile advertisement is grooving and it make sense for mobile service provider make some money on mobile adds instead of giving everything away to Google,
 
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