Yahoo! Is Giving Itself Away
Chris DeMuth Jr. • 48 Comments
Chris DeMuth Jr. • 48 Comments
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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
Fri, Jun. 17, 6:05 PM
- Yahoo (NASDAQ:YHOO) has sold a 48.6-acre development site in Santa Clara, CA (close to its Sunnyvale HQ) to Chinese tech firm LeEco for $250M, according to a deed examined by the Silicon Valley Business Journal. The sale price spells a $144M pre-tax profit, given Yahoo bought the property in 2006 for $106M.
- Yahoo's real estate and patents have been packaged with the company's core business during its sale process. AT&T and a group led by Dan Gilbert have reportedly bid ~$5B for the assets, and Verizon $3B-$3.5B for the core business by itself.
Fri, Jun. 17, 12:17 PM
- Yahoo (YHOO -0.9%) CEO struck a secret truce with in April 2015 with Jeffrey Smith's Starboard Value in which she promised to trim costs, and Smith, in return, agreed to withdraw his board nominees.
- via Douglas Macmillan at WSJ
- Trouble is, Yahoo's expenses ballooned from there, including $20M for the rights for the NFL's first streaming-only game, and more than $160M for the purchase of Polyvore (triple what Yahoo's top dealmaker figured it was worth).
- In the first two quarters after the agreement, Yahoo's total expenses rose an average of 21% vs. 6% less than a year earlier.
- It wasn't an easy job to begin with, but Mayer made things tougher by doubling down on turnaround efforts and clinging to the idea she was going to save Yahoo.
- Smith's frustration eventually boiled over into a revolt beginning in November, and ending with Starboard taking nearly half of Yahoo's board seats. Final bids are expected soon on a sale of the company's core operations.
Tue, Jun. 14, 2:21 PM
- Following second-round bids, AT&T (T +0.3%), Verizon (VZ +0.4%), P-E firm TPG, and a group led by Quicken Loans founder/Cleveland Cavaliers owner Dan Gilbert remain in the running to buy Yahoo's (YHOO +2.2%) core assets, a source tells Fortune's Dan Primack. A joint bid from P-E firms Bain and Vista Equity reportedly didn't make the cut.
- "Price talk" is said to be in the $4B-$5B range. "I think AT&T is just trying to drive the price up on Verizon," Primack also reports hearing from a source.
- Bloomberg reported last week AT&T and Gilbert each bid ~$5B for Yahoo's core business, patents, and real estate. Re/code reported Verizon bid ~$3B-$3.5B for just the core business.
- Yahoo is trading higher, but that's the result of Alibaba (up 3.1%) rallying after providing a strong sales forecast.
Fri, Jun. 10, 4:08 PM
- Bloomberg reports AT&T (T +0.6%) and a group led by Quicken Loans founder/Cleveland Cavaliers owner Dan Gilbert (backed by Warren Buffett) each submitted a ~$5B second-round bid for Yahoo's (YHOO -1.4%) core business, patents, and real estate.
- Separately, a day after CNBC reported Verizon (VZ +1.4%) made a ~$3.5B second-round bid, Re/code reports Big Red made an offer valued between $3B and $3.5B, depending on "how employee compensation commitments are treated." However, Verizon's bid excludes Yahoo's patents and real estate.
- When adjusted for the absence of patents/real estate, Verizon's bid might be competitive with the others. Re/code observes Yahoo respectively values its patents and real estate at $3B and $1B, while adding others assign much lower values to each (~$1B for the patents).
- Yahoo slipped today amid a 2.1% drop for Alibaba, and a 1.3% drop for the Nasdaq.
Fri, Jun. 10, 12:30 PM
Thu, Jun. 9, 9:48 AM
Wed, Jun. 8, 3:41 AM
- Yahoo (NASDAQ:YHOO) is stepping up its fire sale with the addition of a portfolio of about 3,000 patents it hopes will fetch more than $1B, sources told WSJ.
- In recent weeks, the beleaguered web pioneer sent letters to a range of potential buyers for the patents, which date back to Yahoo's initial public offering in 1996 and include its original search technology.
- Preliminary bids are expected next week.
Tue, Jun. 7, 12:52 PM
Tue, Jun. 7, 2:23 AM
- According to a new report in the WSJ, Verizon (NYSE:VZ) on Monday planned to submit a second-round offer of about $3B for Yahoo's (NASDAQ:YHOO) core internet business.
- Private-equity firm TPG was also expected to submit another bid for the assets before yesterday's deadline.
- Yahoo is projected to hold at least one more cycle of bidding, and the offers could change by the final round.
Thu, Jun. 2, 10:17 PM
- Adding to the more colorful side of the stories about potential Yahoo (NASDAQ:YHOO) bidders: Twitter (NYSE:TWTR) met with a management team led by Yahoo chief Marissa Mayer weeks ago to discuss a possible merger, the New York Post reports tonight.
- But though the teams talked for several hours, it looks to have been just an informational tire-kicking, as Twitter reportedly got out of the bidding process afterward.
- Indeed, Twitter CEO Jack Dorsey didn't show up for the confab, and that company has enough on its plate, a source said: “They’re very scared their shareholders would be outraged ... which is not, quite frankly, an unfounded fear.”
- Bids are coming in for the second round in Yahoo's auction of core assets, with Verizon (NYSE:VZ) still widely believed to be a front-runner.
- Previously: SunTrust's Peck: Three pricing scenarios for Yahoo bids (Jun. 01 2016)
Wed, Jun. 1, 3:20 PM
- Second-round bidding for the core assets of Yahoo (YHOO -2.5%) is coming in this week, and SunTrust's Bob Peck has taken a look at the remaining bidders and laid out three scenarios depending on just which assets make up the package.
- Peck reiterated his Buy on the company with a price target of $44; Shares are trading at $37 today, implying 19% upside.
- In a low-end scenario -- the assets draw $2B-$4B, in line with a recent WSJ report -- it's viable for a private equity firm to bid there, he says, looking at debt and ROE ratios and assuming cuts of about 2,000 employees.
- A slightly higher outcome is another scenario: “Leveraging the above math to justify the lower level of the range, we think there are two other assets one could add to Scenario 1 that would either be excluded from 'the core' sale or would be additive to the price": Net present value of the Yahoo Japan royalty for $1B and PP&E of $750M.
- The high-end scenario ($6B-$8B) is reserved for strategic bidders, he writes, who will justify the premium over the mid-line scenario valuing IP at $1B and pursuing more layoffs than others.
Sun, May 29, 1:28 AM
- 62% of U.S. adults get news on social media, and 18% do so often, according to a new survey by Pew Research Center. In 2012 49% of U.S. adults reported "seeing news" on social media.
- 66% of Facebook (NASDAQ:FB) users; 59% of Twitter (NYSE:TWTR) users; 70% of Reddit users; 31% of Tumblr (NASDAQ:YHOO) users; and 19% of LinkedIn (NYSE:LNKD) users say they get news on the site.
- See more interesting statistics at the source, including intentionality (how many users of each platform went looking for news rather than finding it when searching for something else), and how the change over time maps out across different platforms.
Thu, May 26, 8:33 PM
- Verizon (VZ +0.6%) is getting a leg up on competing bidders for the core assets of Yahoo (YHOO +3.3%) -- by hiring an investment bank who was one of Yahoo's top advisers last year, Reuters reports.
- The telecom has reportedly added Bank of America to its team -- which would offer not only intimate knowledge of Yahoo, but also a big balance sheet in case of financing help. Yahoo's other investment banks (Guggenheim, LionTree, Allen & Co.) are boutiques with limited ability to fund the deal.
- BofA was lead adviser last year when Yahoo explored spinning off its stake in Alibaba, a plan it later abandoned.
- While Verizon's prepared to buy all the core assets, sources said, it's mainly (and unsurprisingly) interested in the ad-tech tools, and perhaps things that can be combined with corresponding businesses at AOL.
Wed, May 25, 11:12 AM
- In a surprise revelation, AT&T (NYSE:T) made a bid for Yahoo (YHOO -2.1%) and is still in the running for the core Internet business, Bloomberg reports.
- They were out of the offing according to earlier reports. But they kept involved in the process through a stake in YP Holdings -- which was involved in the early round in April -- and while YP isn't pursuing the transaction any longer, AT&T is still around.
- The interest from the telecom giant would present a formidable challenge for presumed frontrunner Verizon (NYSE:VZ). But Verizon didn't submit one of the highest first-round bids, a pair of the sources said.
- The process has another week or likely more time to play out.
Wed, May 25, 10:23 AM
- Yahoo (YHOO -2.5%) is following Alibaba (down 4.1%) lower after the Chinese e-commerce giant disclosed the SEC is probing consolidation practices and related-party transactions, as well as data reported regarding Alibaba's Singles Day activity.
- Yahoo rallied earlier this month after Alibaba reported its revenue growth accelerated in calendar Q1. The company's 384M-share Alibaba stake has a current pre-tax value of $29.9B.
- Now read: Yahoo: Low Bids Wouldn't Be Surprising
Mon, May 23, 5:20 PM
- Yahoo (NASDAQ:YHOO) bidders were unimpressed with the company’s due diligence materials, which is why they lowered their bids, two sector bankers say.
- Watchers anticipated bids between $4B and $8B, but expectations dropped to $2-3B, according to the Wall Street Journal.
- The lowball offers came after potential buyers saw information in Yahoo’s “virtual data room” as part of due diligence, causing them to reconsider valuation estimates, the bankers said. “They saw the data room, and sharpened their pencils.” One banker says Yahoo’s confidential information memorandum disconcerted buyers for several reasons: information was not comprehensive or detailed; business projections were “not compelling” and the ratio of revenue to EBITDA was “troubled.”
- Source: CFTN
- Now read Yahoo's Marissa Mayer Pays Herself »
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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