Sunday, July 24, 2016

Verizon Yahoo! redemption: the moment of truth –

According to several US media reports, Verizon will announce Monday the acquisition for $ 4.8 billion of the core business of the US internet group in difficulty, which includes popular online services such as Yahoo Mail or Yahoo News.

neither Verizon nor Yahoo! would comment.

the idea is to merge with Verizon Yahoo! online activity with AOL, he has already bought the year last, and to entrust the leadership of the new group to the boss of the other former flagship of the internet, Tim Armstrong.

the CEO of Yahoo !, Marissa Mayer, for its part should, once the curly transaction, leaving the group with assets summarize in a portfolio of patents and investments in Asian companies Alibaba and Yahoo Japan, said the New York Times.

These already warrant today the most of its 37 billion market capitalization, far more than 100 billion posted during the internet bubble or up to 47 billion for which Microsoft had offered to buy in 2008.

Investor pressure

the sale of the core business at Verizon is an admission of failure to Marissa Mayer, who had raised many hopes on his arrival at the helm in 2012, but has yet to announce a net loss of $ 440 million in the second quarter.

She tried for four years to revive Yahoo with multiple acquisitions, modernization of its products, and more recently a plan last Chance reducing staff by 15% and streamlining activities.

Aside increasingly under pressure from its shareholders, Yahoo! not exclude recent months the sale of any assets, but kept silent about the evolution of its tender procedure.

“We are right in the evaluation process of proposals”, was only mentioned Marissa Mayer presenting the quarterly results Tuesday analysts.

“in order to maintain the integrity of the proceedings, we will not comment until we have a definitive agreement to announce,” reaffirmed weekend a door Floor-group told AFP.

Yahoo have confirmed it has accepted the offer from Verizon Saturday afternoon to the other remaining candidates –in particular the funds TPG and Dan Gilbert, founder Quicken loans, which Warren Buffett was willing to provide assistance financière–, according to the website Re / code, a specialist in the technology sector.

Betting advertising

Although some analysts questioned the actual interest to marry fallen two glories of the internet, the idea of ​​a marriage between Yahoo! and AOL has been raised several times in the past.

It was among other things a recommendation late 2014 the activist fund Starboard Value, one of the shareholders under the pressure which Yahoo! eventually consider a rollback.

Verizon which must publish its own quarterly results Tuesday morning, never confirmed the offer but never hidden his interest either, and it is favored from the start.

“We continue to believe that Verizon is the most sensible buyer to combine (Yahoo’s assets) with AOL, reduce costs and take advantage of its proprietary data, “summed up Daniel Salmon, an analyst at BMO Capital Markets.

Verizon can not rely only on its mobile services as a growth engine, and has launched a strategic transformation: it seeks to strengthen in the video and especially online advertising, a market dominated today by Google and Facebook.

the leaders of the telecoms group has repeatedly explained that it is for its advertising technologies they had bought AOL, as well as another company called Millennial Media.

But in more mainstream sites to its brand and blogging site Tumblr, the total attendance was estimated at one billion monthly visitors last year by Trefis research company, Yahoo! also owns specialist tools BrightRoll advertising and analytics company Flurry.

Yahoo would be “an opportunity to win a larger scale,” recognized the Verizon CEO Lowell McAdam, one of many times he was questioned about his intentions.


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