Verizon To Acquire Yahoo For $4.83 Billion

Verizon announced yesterday that it will acquire Yahoo for approximately $4.83 billion in cash


Verizon Communications Inc. (NYSE, Nasdaq: VZ) and Yahoo! Inc. (Nasdaq: YHOO) today announce they have entered into a definitive agreement under which Verizon will acquire Yahoo's operating business for approximately $4.83 billion in cash, subject to customary closing adjustments.

Yahoo informs, connects and entertains a global audience of more than 1 billion monthly active users** -- including 600 million monthly active mobile users*** through its search, communications and digital content products. Yahoo also connects advertisers with target audiences through a streamlined advertising technology stack that combines the power of their data, content and technology.

According to the press release, LionTree Advisors, LLC, Allen & Company LLC, Bank of America Merrill Lynch and Guggenheim Securities, LLC are acting as financial advisors to Verizon.
Goldman, Sachs & Co., J.P. Morgan Securities LLC and PJT Partners are acting as financial advisors to the Yahoo Board and its Strategic Review Committee.

Again, Allen & Co. are involved in a big tech deal. Thoughts? What will the fees be like?

http://www.prnewswire.com/news-releases/verizon-t…

 
Best Response

Just to think that Microsoft was willing to offer over $44BB less than 5 years ago. Could you imagine how much that could've helped Microsoft with their search capabilities and overall media-related portfolio.

Now it sold for less than $5BB. Yahoo paid $5.7BB for Broadcast.com (Mark Cuban) 15 years ago.

Oh how the mighty have fallen.

"It is better to have a friendship based on business, than a business based on friendship." - Rockefeller. "Live fast, die hard. Leave a good looking body." - Navy SEAL
 

Zuck paid $42 per user for WhatsApp.

Meanwhile, Mark Cuban got over $10,000 per user for Broadcast.com:

"Broadcast.com (formerly AudioNet) reported 1998 revenues of $3.1 million as of March 31, and a net loss of $2.7 million. In 1997, the company reported a loss of $6.5 million on revenues of $6.9 million. A year earlier, it posted a loss of $3 million on revenue of $1.8 million."

I wonder how Cuban even kept a straight face during negotiations.

 

I met him twice, and I can honestly say that it's because he knew what he was doing. He knew he was literally raping Yahoo. He's such a douchey guy, but cool as hell.

Poster child of perfect luck.

"It is better to have a friendship based on business, than a business based on friendship." - Rockefeller. "Live fast, die hard. Leave a good looking body." - Navy SEAL
 

It's worth noting that the deal doesn't include Yahoo's stake in Yahoo Japan, or Alibaba (worth around 40 billion per Bloomberg). That pretty much explains the difference in the size of this deal vs. Microsoft's previous offer.

 
Lancer:

It's worth noting that the deal doesn't include Yahoo's stake in Yahoo Japan, or Alibaba (worth around 40 billion per Bloomberg). That pretty much explains the difference in the size of this deal vs. Microsoft's previous offer.

Except the fact that the Alibaba stake was worth alot less at the time of Microsoft's offer, both in absolute terms and as a percent, than it is now. The valuation of Yahoo's core business has plummeted since Microsoft's offer.

 
MBA_Junkie:

wtf? can you share the link? I ask because I am seeing a lot of 'blame the men' things lately... not only online but in real life as well..

You must be new to the 21st century.

Welcome and please watch your privilege.

 

Modi natus ipsum sapiente voluptatem. Et et enim nesciunt ut. Accusantium autem consequatur quia ratione inventore. Officia aperiam et quo consequatur beatae. Earum tempore nihil perspiciatis in eveniet sint. Voluptatum rerum voluptas minima qui facilis.

Consequatur a voluptas non consectetur est unde laboriosam. Et omnis vel dolores sapiente soluta consequuntur maxime officiis. Officiis aperiam fugit magnam. Voluptate rem accusamus est molestiae optio. Perferendis quisquam et assumenda tempore assumenda ad.

"That was basically college for me, just ya know, fuckin' tourin' with Widespread Panic over the USA."

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
GameTheory's picture
GameTheory
98.9
6
dosk17's picture
dosk17
98.9
7
DrApeman's picture
DrApeman
98.9
8
CompBanker's picture
CompBanker
98.9
9
kanon's picture
kanon
98.9
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”