I disagree with you. 1. This is a small acquisition for VZ. VZ has a market cap of 300Bn and FCF of 18.6Bn (that's after tax money). This is noise. 2. YHOO's core assets produced 600MM in FCF last year - well above VZ's cost of capital for the transaction. 3. There are only four other sites that are in YHOO's space and do it well (FB, GOOG, MSN). None of those are acquirable. This gives VZ an edge. A content provider with an infrastructure company provides a competitive threat to GOOG and FB. It increases VZ's negotiating leverage with them and if VZ is ever able to get rid of net neutrality then YHOO will instantly become hugely profitable. It's virtually impossible to build a business with the scale of YHOO's now. So this was the only game in town. And while it's a small move, VZ's market cap is up 3Bn (more than 1/2 the price of YHOO) since the leak came out that they were the top contender.
Yeah...you're right. I've been reading all morning. Its small potatoes for VZ, and they aren't counting on the ad revenue so who knows what they're up to. No trade here for now.
I used to get my data free from Yahoo. The bums have locked me out. Keep asking for pin numbers etc. Don't they want customers ?
1998 Yahoo declines to buy Google for $1 million This is what google looked like in 1998: Google page in 1998 The big search engines were on the bottom of the page.
Karen Swisher from RE-CODE on CNBC..... says the whole deal with Verizon and Yahoo is like "kabuki theatre". Bogus, totally bogus. Marissa Myer is not going stay on board for long.
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.
What will happen to YHOO http://finance.yahoo.com/news/verizons-acquisition-means-yahoo-users-165705063.html What about the stocks: http://stockcharts.com/h-sc/ui?s=vz http://stockcharts.com/h-sc/ui?s=YHOO
The shareholders should sue her for gross incompetence. At least get back some of the millions they gave her.