Verizon is
close on a deal to buy yahoo’s core business for about $5 billion, according to
sources familiar with the talks
The Telco giant has been considered the favorite to buy Yahoo’s
internet assets, which it wants to combine with AOL, which it bought last year
for $4.4 billion.
Part of Verizon’s pitch to Yahoo’s board is that it is the logical
choice, since its already operating a similar business. The concept of such a
deal is to combine its advertising tech assets and become the third alternative
to leaders Facebook and Google. Both companies also have extensive media assets.
If Verizon bid that high, they definitely got it, because they’re
the safe bet for Yahoo,’’ said a rival bidder.
And insider sources at Yahoo, whose efforts are being led by board
member Tom Mclnermey, also said that it wanted a deal that was easiest to
close. ‘’there is no worry with Verizon about financing or as many questions
about integration,’’ said one source. It can swallow this without a lot of
trouble.’’
And Verizon raised the price it was willing to pay in its most
recent offers for Yahoo, delivered this week. But some members of Verizon’s
board had previously expressed concern about the deal’s price tag and were
worried about other costs. That includes the revelation that search partner
Mozilla had been given advantageous and pricey termination terms in a deal
struck by Yahoo CEO Marissa Mayer.
Speaking of Mayer, if the transaction is completed it would be an
ironic turn, given that a key exec on the Verizon side is AOL’s Tim Armstrong. He
and Mayer worked together at Google many years ago. And most importantly, as
recently as two years ago, Mayer had rejected Armstrongs efforts to merge the
two companies. AOL went with Verizon, which would now be swallowing up Yahoo .
Yes, the snake eventually eats itself! Also, Armstrong is a very
good salesman!
But the deal is not done. As recently as yesterday, yahoo was
asking an investor group led by Quicken Loans’ Dan Gilbert for more details on
their offer. Private equity firm TPG has also been very aggressive in the
bidding.
Bloomberg, as well as CNBC, earlier reported that Verizon was in
exclusive talks to buy Yahoo.
For more details ; contact me via inyamachidi355@gmail.com
No comments:
Post a Comment