Yahoo! Is Giving Itself Away
Chris DeMuth Jr. • 48 Comments
Chris DeMuth Jr. • 48 Comments
Yahoo: Figuring Out Alibaba And Then Focusing On Original Content Creates Upside Catalyst
Jacob Donnelly • 39 Comments
Jacob Donnelly • 39 Comments
Getting From BooHoo! Back To Yahoo Again May Not Be That Far Off
Lord Baltimore • 51 Comments
Lord Baltimore • 51 Comments
Today, 9:28 AM
- Verizon (NYSE:VZ) is 0.5% lower premarket following a Q2 earnings report where profits beat expectations despite falling off sharply in a quarter impacted by a lengthy wireline strike.
- Revenues dropped more than 5% and missed expectations by about 1.4%. Operating income was $4.6B, with a margin of 14.9%.
- The company posted 615,000 retail postpaid net additions, bringing end-of-quarter retail connections to 113.2M (up 3.3%) -- retail postpaid connections grew 3.9% to 107.8M; prepaid connections fell to 5.4M. Retail postpaid churn was 0.94% (up 4 basis points).
- There's a lot of Yahoo (NASDAQ:YHOO) books to go over, but the cost synergies should be "meaningful," said CEO Lowell McAdam.
- Cash flows from operations were $5.4B; $12.8B through the first half, down $6.1B from the year-ago period (which included a one-time $2.4B benefit tied to monetizing towers).
- Press Release
Today, 4:37 AM
- "I plan to stay. I love Yahoo (NASDAQ:YHOO) and am excited to see it into its next chapter," she said during a conference call, while AOL (NYSE:VZ) CEO Tim Armstrong seemed to confirm "she will be running" the company.
- Mayer has already earned over $100M in reported compensation from the search giant over the past four years at the helm (and that doesn't include the $55M she's due if she steps down.)
- Previously: Verizon confirms $4.83B deal for Yahoo (Jul. 25 2016)
Yesterday, 7:22 AM
- The deal is expected to close in Q1, and while the sale includes Yahoo's (NASDAQ:YHOO) core Internet assets and real estate, it does not include Yahoo's stake in Alibaba and Yahoo Japan, or its cash. There assets will continue to be held by Yahoo, which will change its name upon the deal's closing, and continue to be a publicly traded company. Said cash is expected to be returned to shareholders.
- Yahoo will hold a dial-in conference call to discuss at 8:30 ET. Verizon (NYSE:VZ) will discuss when it holds its earnings call tomorrow at 8:30 ET.
- VZ +0.35% premarket; YHOO halted
- Previously: Reports: Verizon to announce $4.8B deal for Yahoo before open (July 24)
Sun, Jul. 24, 2:53 PM
- Verizon (NYSE:VZ) is set to pay $4.8B to acquire Yahoo (NASDAQ:YHOO) in a deal that is likely to be announced before the market opens Monday, according to Bloomberg.
- As reported in the past few days, the deal will include core Internet assets as well as Yahoo's real estate, though some intellectual property will be sold separately.
- After those sales, Yahoo would hold its stakes in Yahoo Japan and Alibaba Group (combined value of about $40B).
- Verizon's expected to keep its new purchase relatively intact in a bid to combine it with AOL and compete with Google and Facebook in digital ads "by tapping into users on sites like Yahoo Finance," Bloomberg notes.
- Previously: Verizon's Yahoo interest includes real estate, not IP; Munster: 'Great outcome' (Jul. 22 2016)
- Previously: Verizon reported to be close to landing Yahoo (Jul. 22 2016)
Fri, Jul. 22, 12:44 PM
- Leaks that Verizon (VZ +1%) continues to be the front-runner to close a deal for core Yahoo (YHOO +1%) have the telecom spending about $5B on the deal, vs. an earlier $3.75B-$4B.
- While earlier Verizon interest excluded Yahoo's patent portfolio and real estate, the current talks do reportedly include the real estate.
- Yahoo had set aside about 3,000 patents into a subsidiary called Excalibur for separate auction by Black Stone IP, though other bidders like AT&T (T +1.5%) or a group with Quicken Loans' Dan Gilbert (still reportedly talking with Yahoo) or an aggressive TPG might yet want to buy the IP along with core assets.
- The deal would be a "great outcome," Piper Jaffray analyst Gene Munster says, with time of the essence since "the real value here is unlocking Yahoo Japan and Alibaba (BABA +0.1%) in a cash-free transaction. And they really need to get that done before the election."
- The $5B figure is still a bit low, Munster says, as he expects the deal to be around $6B. "If you look at the tax benefit for Yahoo Japan and Alibaba, that's about a $10B or $11B tax benefit, so a billion dollars here and there doesn't make much difference; there's still upside to Yahoo shares."
Fri, Jul. 22, 8:48 AM
Tue, Jul. 19, 9:27 AM
- Five bidders are left after a final deadline in an auction for the core business of Yahoo (NASDAQ:YHOO), CNBC reports.
- The company hadn't provided details with its earnings report yesterday other than to say it was deep into proposals.
- It's now expected to finish the bidding process entirely by the end of July.
- There's yet no word on who the five are, but numerous media reports have zoomed in on Verizon (NYSE:VZ) as a favorite, with AT&T (NYSE:T) still in the running along with private-equity combinations and a group led by Quicken Loans' Dan Gilbert and backed by Warren Buffett.
Mon, Jul. 18, 6:06 PM
- Yahoo (NASDAQ:YHOO) reported Q2 EPS of $0.09 vs. $0.10 expected and revenue of $1.3B vs. $1.08B expected.
- Although the revenue beat comes as a slight surprise, most investors are focused on the looming sale of Yahoo's core business assets.
- Marissa Mayer briefly addressed the sale process during Yahoo's earnings call saying only that the company was deep into the process of evaluating proposals. She also noted there is much untapped potential within Yahoo's Alibaba stake, hinting at the anticipated split between the company's core business and its various external holdings.
- Shares are +0.6% in after hours trading.
Mon, Jul. 18, 4:46 PM
Mon, Jul. 18, 7:19 AM
Sun, Jul. 17, 5:35 PM
Thu, Jul. 14, 5:32 PM
- Monday is the final date to enter a bid for Yahoo's (YHOO) core online business.
- Search, email and advertising operations are all included in the sale.
- Board of directors to determine course of action shortly thereafter.
- Yahoo has been mulling a sale since February in an effort to consolidate its holdings and focus on the significant stakes it has in Alibaba and Yahoo Japan.
- Several bidders involved including Verizon, AT&T, numerous private equity companies and others.
- Yahoo will additionally release earnings on Monday with the speculation of this sale already factored into expectations.
Thu, Jul. 14, 12:35 PM
- Yahoo (YHOO +1.1%) can meet Q2 analyst estimates, RBC says, but that doesn't necessarily mean the stock is a buy.
- The firm reiterated its Sector Perform rating, with a $38 price target (the stock is trading at $38.04 currently).
- Analyst Mark Mahaney says Q3 results are achievable as well, but the company and analysts are counting on a "relatively aggressive" margin recovery.
- In search metrics, RBC is forecasting net search revenue to fall 23% for Q2. In display metrics, the firm sees Yahoo's revenue falling 3%; while ads sold grew 8% in Q1, price per ad fell 6%. And while revenue in the company's "Mavens" (mobile, video, native, social) is up, "the challenge for Yahoo is that its traditional non-MaVeNS segment is declining Y/Y," Mahaney writes.
- Yahoo is set to report earnings after Monday's close, and hold a conference call at 5:30 p.m. ET that day.
Mon, Jul. 11, 8:48 AM
- Pivotal Research downgraded Yahoo (NASDAQ:YHOO) to Hold from Buy, based in part on declining market share in digital advertising.
- "Going the other direction in terms of market share, Yahoo - which peaked at around 20% share of global digital advertising between 2004 and 2006 - has around 3% share and falling," analyst Brian Wieser wrote in a research note.
- The firm left its $41 price target on the stock unchanged.
- YHOO -1.2% premarket
Tue, Jul. 5, 10:24 AM
- A third round of bids for Yahoo (NASDAQ:YHOO) will arrive tomorrow, sources tip Recode.
- The early offers from Verizon, TPG Capital, and a group led by Quicken Loands owner Dan Gilbert have disappointed investors.
- The final selection process is expected to commence on July 18, with an announcement or update anticipated the next day.
- Shares of Yahoo have had a tough time cracking through the $38 level over the last few months.
Thu, Jun. 30, 5:09 AM
- Media leaks over who could buy Yahoo (NASDAQ:YHOO) have died down ahead of the company's annual meeting today, where investors will likely ask for an update on the sales process.
- Shareholders are expected to approve Yahoo's new board of directors, which in April was expanded to 11 from nine members, and drill executives about the web portal's slow progress in selling its core internet business (final bids are due in early July).
Yahoo!, Inc. is a global technology company, which delivers personalized search, content, and communications tools on the web and on mobile devices. The company provides a variety of products and services, many of them personalized, including search, content, and communications tools-all daily... More
Industry: Internet Information Providers
Country: United States
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