Verizon To Acquire Yahoo For $4.83 Billion

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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-to...

Comments (26)

Jul 25, 2016

Shitty, given the number of advisors involved and the relatively meh size of the deal. Nice print if you care about the internet and technology, but nothing that special either.

Jul 25, 2016

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

    • 1
Jul 26, 2016

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.

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Jul 27, 2016

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

Best Response
Jul 25, 2016

So Yahoo worth less than the UFC huh

    • 2
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Jul 25, 2016

From 120B + to 4.8 haha

Jul 26, 2016

She came, made a whole bunch of shitty acquisition, and is now set for life. Life must be good for Marissa.

    • 1
Jul 26, 2016

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.

Jul 26, 2016
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.

Jul 27, 2016

What's crazy is that Yahoo has over 7 billion in cash. Nice win for VZ

Jul 27, 2016
upod01:

What's crazy is that Yahoo has over 7 billion in cash. Nice win for VZ

Lol wut

    • 1
Jul 27, 2016

deal doesn't include cash, yet another reason people are overreacting to this low number.

Jul 27, 2016

6 advisors on this deal per an article I read on Monday , they described Allen & Co as the mysterious boutique from San Francisco.

Jul 27, 2016

Mayer is still a babe.

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Jul 28, 2016
CRE:

Mayer is still a babe.

I 100% second this.

Jul 29, 2016

Funny how Marissa played the feminist card on FT.

Yeah, destroy shareholder value, get paid 200m + $ and whine about the men culture in the company.

Whose idea it was to pose for certain magazines back then eh ?

Jul 29, 2016

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..

    • 1
Jul 29, 2016
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.

Jul 29, 2016

Dude...Google "Marissa Mayer FT" and you find this: http://www.ft.com/cms/s/0/50fe03c8-525a-11e6-befd-...
She was also complaining about supposedly biased reporting, not a "man culture" in the company.

Jul 31, 2016
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