Verizon is Currently the Top Dog in Bid to Buy Yahoo

Discussion in 'Android News' started by dgstorm, Apr 18, 2016.

  1. dgstorm

    dgstorm Editor in Chief
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    It looks like a few things have shifted in the process to get Yahoo sold off. First, several previous suitors have opted to drop out of bidding. Google was considering a bid, but declined (most likely do to the likelihood of heavy regulatory hurdles for taking out a competing search engine).

    Surprisingly, Comcast and AT&T also chose to stay out of the running. The biggest shift is that Time Inc. has dropped out of the bidding. They were one of the more interested parties originally, but they concluded that "the degree of difficulty in righting Yahoo’s fortunes is too great." [Quote comes from the source: WSJ]

    Ultimately, only a handful of interested parties remain in contention out of approximately 40 firms originally interested. The rising "top dog" is actually not too surprising... Verizon has risen to the top of the pack as the most likely candidate to make a deal. According to Craig Moffett, senior analyst at MoffettNathanson, a telecommunications-research firm, “Verizon is trying to pivot its business from analog to digital. Verizon believes that a combined AOL/Yahoo would provide the digital advertising platform they need to execute their video reinvention strategy.”

    Apparently, Yahoo’s core business could fetch between $4 billion and $8 billion in the auction. Verizon has a market cap of about $210 billion, and around $4.5 billion in cash on its balance sheet. Right now it looks like the only real competition that Big Red has for the Yahoo acquisition comes from private-equity firms like Bain Capital, TPG and Advent International.

    It's likely that if Verizon wants Yahoo bad enough, they will probably offer a premium above what the competing private equity firms are willing to offer. Despite that, sources within the industry have indicated Verizon is unlikely to pay more than Yahoo is worth. This is because Verizon is striving to restore its credit rating to what it had previously to spending $130 billion in 2014 to buy out Vodafone Group PLC’s minority stake in Verizon Wireless.

    Overall, it looks like the Yahoo sale could be a long and protracted process, with the distinct possibility that Big Red will be the big winner.

    Source: Wall Street Journal
     
  2. pc747

    pc747 Administrator
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    Wonder how that will effect Android phones?

    Sent from my SAMSUNG-SM-N920A using Tapatalk
     
  3. Gremlin

    Gremlin Active Member

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  4. dgstorm

    dgstorm Editor in Chief
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    Probably just means that if Verizon wins the bid, Verizon customers will see Yahoo bloatware on their devices on top of everything else. :rolleyes:
     
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  5. Gremlin

    Gremlin Active Member

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  6. Vepaot

    Vepaot Silver Member

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    Verizon, bring back Geocities!
     
  7. pchain

    pchain Senior Member

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    Verizon knows they can fund the purchase of Yahoo by simply imposing a few more new fees to its existing customer base.
     
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  8. liftedplane

    liftedplane Gold Member

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    I'm sure that they'll come up with some way to charge a service fee per search as well.

    I'd imagine a keyword maintenance fee as well.

    :eek:
     
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  9. dgstorm

    dgstorm Editor in Chief
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    I was going to say this was funny, but then I realized, it's probably true... which is not funny at all! :confused:
     
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  10. zinethar

    zinethar Senior Member

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    And just who did you think was going to foot the bill? Investors or users? Right. My bill already is way too high!
     
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  11. Mustang02

    Mustang02 Diamond Member

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    Speak with your wallet and drop them, it's about the only way to make it hurt.
     
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  12. shockracer

    shockracer Active Member

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    Great, my free email is going to have a fee...