Yahoo! Inc.

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  • Mon, Feb. 8, 3:29 PM
    • AOL chief Tim Armstrong is the point person as Verizon (VZ -0.7%) explores a bid for assets at Yahoo (YHOO -4.3%), Bloomberg reports.
    • Discussions aren't far along and Verizon hasn't hired any bankers, but Armstrong is the one leading preliminary discussions, sources said.
    • Another source said Armstrong was picking up on conversations he had with Yahoo CEO Marissa Mayer at the Sun Valley media conference in 2014 -- before AOL was bought by Verizon, but while he was exploring the idea of combining AOL and Yahoo. The two are both former Google executives.
    • Armstrong has had a fairly free hand to run AOL as an independent advertising/media business at Verizon, and he also ran point on Verizon's $248M purchase of Millennial Media last year -- another company with which the independent AOL had begun tie-up talks.
    • Yahoo has dipped today, -4.3%, to a new 52-week low of $26.48.
    • Previously: Verizon confirms interest in buying Yahoo (Feb. 08 2016)
    • Previously: Bain and TPG reportedly eyeing Yahoo; shares close down 4.7% post-earnings (Feb. 03 2016)
    • Previously: AOL closes $248M deal for Millennial Media (Oct. 23 2015)
    | Mon, Feb. 8, 3:29 PM | 10 Comments
  • Mon, Feb. 8, 2:02 AM
    • Speaking with Jim Cramer of CNBC's "Mad Money" on Friday, Verizon (NYSE:VZ) CEO Lowell McAdam confirmed that his company is weighing a bid for Yahoo (NASDAQ:YHOO).
    • "At the right price, I think marrying up some of their assets with AOL and the leadership would be good," he declared.
    • Verizon previously described its strategy as being broken into three tiers: having great connectivity, holding traffic-driving platforms, and owning content.
    • Previously: Verizon says any rumors of a bid for Yahoo are "false" (Jan. 28 2016)
    | Mon, Feb. 8, 2:02 AM | 59 Comments
  • Wed, Feb. 3, 7:30 PM
    • Shortly after Yahoo (NASDAQ:YHOO) confirmed it's exploring "additional strategic alternatives" while pushing ahead with a reverse spinoff of its core business, the FT reports Bain, TPG, and other P-E firms are weighing potential bids for core Yahoo. The paper adds AT&T (NYSE:T) and InterActiveCorp (NASDAQ:IAC) "are also believed to be examining the company."
    • Many firms are expected to make full or partial bids for core Yahoo. CFO Ken Goldman: "A number of companies have said they want to look at us, and there are a number of private equity firms that are interested in looking at us. I’m not saying that we’ve received offers ... I’m saying parties have expressed interest in us. And what we’re saying is that we’ll be open [to] that.”
    • Re/code's Kara Swisher reports Yahoo has hired well-known tech i-banker Frank Quattrone to help it explore options; Goldman Sachs and Morgan Stanley are already on the payroll. "It is clear to us that what is happening inside is very dysfunctional," says an unnamed major investor talking to Swisher.
    • Meanwhile, with a sale effort and job cuts already expected, Yahoo fell below $28 in regular trading following its Q4 report and myriad of job cut, writedown, and strategic review announcements. Weak guidance may have weighed: Yahoo guided in its earnings slides (.pdf) for Q1 GAAP revenue of $1.05B-$1.09B and 2016 revenue of $4.4B-$4.6B, below consensus estimates of $1.14B and $4.78B.

      2016 ex-TAC revenue guidance of $3.4B-$3.6B is below 2015 ex-TAC revenue of $4.09B, which itself was below 2014's $4.4B. Non-GAAP op. income is  expected to drop to $150M-$250M from 2015's $342M and 2014's $755M.
    • Also of note: 1) $230M of Yahoo's $4.46B goodwill writedown was related to the $1.1B Tumblr acquisition. On the earnings call (transcript), Yahoo disclosed Tumblr failed to hit the company's $100M 2015 revenue target. 2) Along with everything else, Yahoo has begun exploring the sale of "non-strategic assets" such as patents and real estate. It estimates such sales could yield $1B-$3B in cash by year's end.
    • Prior Yahoo coverage
    | Wed, Feb. 3, 7:30 PM | 20 Comments
  • Thu, Jan. 28, 12:59 AM
    | Thu, Jan. 28, 12:59 AM | 30 Comments
  • Fri, Jan. 8, 2:07 PM
    • Bloomberg reports Yahoo (NASDAQ:YHOO) is reconsidering the spinoff of its core business, and is now open to selling it. Shares have spiked higher in response.
    • Activist Starboard Value has called for a sale of core Yahoo. The company announced in December (along with the cancellation of its Alibaba stake spinoff plans) it would explore a spinoff of its non-Alibaba assets.
    • Bloomberg cautions Yahoo hasn't yet decided whether to sell the core business or hired a bank to run a sale process. If core Yahoo goes on the block, various P-E, Web, media, and telco firms are expected to bid for all or parts of the business.
    | Fri, Jan. 8, 2:07 PM | 36 Comments
  • Dec. 9, 2015, 10:22 AM
    • "There is no determination by the board to sell the company or any part of it," says chairman Maynard Webb following news Yahoo (YHOO +0.6%) has cancelled plans to spin off its Alibaba stake and will instead explore the spinoff of its other assets. He adds the board thinks Yahoo remains undervalued and is focused on "unlocking" that value.
    • Various publications reported last week Yahoo is considering a sale of its core business. P-E firms and media/telecom companies have been rumored to have interest in part or all of the company, with AOL owner Verizon declaring it would explore a deal if Yahoo put itself on the block.
    • Meanwhile, Marissa Mayer states on CNBC Yahoo has a number of options for doing a taxable or tax-free spinoff, and is exploring them. Regarding a sale, she deems the board obligated to engage with anyone making a good offer, but adds Yahoo isn't proactively seeking bids.
    • SunTrust's Bob Peck (Buy, $40 target) thinks core Yahoo could be worth $6B-$8B (higher than many estimates) after factoring the value of assets such as Tumblr (blogging), Flurry (mobile ads/app analytics), and BrightRoll (video ads). He also thinks Alibaba could buy the whole of Yahoo at a 20% premium and still make the deal accretive by 5%-10%, and that Yahoo could potentially swap its Alibaba or Yahoo Japan shares for another asset.
    • FBR's William Bird (Outperform, target hiked by $5 to $44) sees many potential suitors for core Yahoo, and estimates a $1.70/share tax bill if it's sold. He thinks the market was assuming a full ~$11/share tax bill for the Alibaba spinoff.
    • Separately, Yahoo has disclosed PayPal Mafia member Max Levchin is resigning from the board due to "other professional commitments and demands on his time." Levchin resigned as Yelp's chairman earlier this year.
    • Update (11:08AM ET): Citi has downgraded Yahoo to Neutral. Shares are now down 0.4%.
    • Update 2 (12:44PM ET): Yahoo is now down 4.4%. The Nasdaq is down 1.8%.
    | Dec. 9, 2015, 10:22 AM | 12 Comments
  • Dec. 8, 2015, 3:43 PM
    | Dec. 8, 2015, 3:43 PM | 5 Comments
  • Dec. 7, 2015, 9:14 AM
    | Dec. 7, 2015, 9:14 AM | 27 Comments
  • Dec. 4, 2015, 1:28 PM
    • As Yahoo (NASDAQ:YHOO) wraps a few days of deliberations over its future amid speculation about whether it should focus on its core or its Alibaba stake, Mizuho is weighing in definitively: Sell the core Web business, and sell it to Comcast (CMCSA +2%).
    • "It remains unclear if the IRS will tax the spin-out of Aabaco, but in our view, a taxed transaction on a likely $3-$5b sale of the core Yahoo business outweighs the risk of the company/shareholders being hit with a $20b IRS tax bill on a spin-out of Aabaco," write the firm's Neil Doshi and Sam Phan. "We think the best option for Yahoo would be to sell its core biz to a strong strategic buyer –- namely Comcast."
    • The two cited four reasons for targeting the media/telecom giant as a buyer: First, skepticism that Yahoo can pull another turnaround; Comcast's existing digital assets; ad assets at Yahoo complementary to Comcast's ad business; and Comcast's strong ability to absorb a deal (with $25B in annual EBITDA, Comcast could retain debt-to-EBITDA ratio of 2:1).
    • Previously: WSJ: Alibaba unlikely to buy core Yahoo business (Dec. 03 2015)
    • Previously: Media companies linked to circling pack around Yahoo Internet business (Dec. 02 2015)
    | Dec. 4, 2015, 1:28 PM | 2 Comments
  • Dec. 3, 2015, 7:05 AM
    | Dec. 3, 2015, 7:05 AM | 12 Comments
  • Dec. 2, 2015, 9:42 PM
    • While speculation about buyers for Yahoo's (NASDAQ:YHOO) core Internet business is focused on private equity, Yahoo's evolution as a media company means a number of media/telecom firms are in play for all or part of the business.
    • A sale of the core business might not happen -- it's not the main purpose of Yahoo's meeting -- but on the other hand, a transaction would certainly value it at more than where it is locked up in Yahoo, which may be less than zero because of the investments in Alibaba and Yahoo Japan.
    • Estimates vary widely on the Internet business' value, from just under $2B to as much as near $4B. Comcast (NASDAQ:CMCSA) could have room for that after it failed to acquire Time Warner Cable; it's been spreading out investments in a number of media and Internet companies this year, and it could lump in Yahoo's properties with its own Xfinity online video.
    • Like Verizon (NYSE:VZ), another potential Yahoo Internet suitor, Comcast has also been shoring up its ad-tech bona fides with some 2015 acquisitions. Verizon could use Yahoo's data to present a better competitive face to Google and Facebook, though it would have redundancies to deal with.
    • Other companies like News Corp. (NWS, NWSA) or Time Inc. (NYSE:TIME) may be more interested in some pieces of Yahoo's business rather than the whole. SunTrust analyst Robert Peck even considers AT&T (NYSE:T) and Walt Disney (NYSE:DIS) prospective buyers; Disney for tapping the data to market theme parts and movies, and AT&T trying to match up better against the Verizon/AOL combo.
    • Previously: FT: P-E firms show interest in Yahoo's core business (updated) (Dec. 02 2015)
    | Dec. 2, 2015, 9:42 PM | 15 Comments
  • Dec. 2, 2015, 1:44 PM
    • At least three unnamed P-E firms have explored buying Yahoo's (YHOO +6.5%) core Internet business in recent months, the FT reports. No formal talks have been held.
    • The paper joins the WSJ in reporting Yahoo's board is exploring the sale of the core business this week amid tax concerns regarding the planned Alibaba stake spinoff. The business, pressured by display ad share loss and tough search competition from Google/Bing, had 2014 revenue (ex-TAC) $4.4B and op. income of $755M. Thanks in part to the restructuring of the Microsoft search deal, Q3 revenue fell 8% Y/Y to $1B.
    • Re/code, for its part, downplays the WSJ's report. Though it says Yahoo's board will mull the status of the Alibaba spinoff following pressure from Starboard Value to sell the core business instead, it adds the spinoff remains set for early January for the time being, and that a CEO has been selected.
    • The site also states Yahoo, which was recently reported to have hired McKinsey to help decide which businesses to keep/shutter, plans to "unload a number of units and cut resources to others also remaining in place."
    • Yahoo remains sharply higher in response to the WSJ's report. Shares are still down 29% YTD.
    • Update: Sources tell the WSJ Verizon (NYSE:VZ) and InterActiveCorp (NASDAQ:IACI) are among the companies that would "likely explore a purchase" of core Yahoo. P-E firm TPG Capital has reportedly "looked at buying media properties within Yahoo."
    | Dec. 2, 2015, 1:44 PM | 12 Comments
  • Aug. 3, 2015, 3:58 PM
    • Re/code reports Yahoo (YHOO -0.1%) paid $200M in cash to buy social apparel product discovery/shopping site Polyvore, plus up to $40M in employee retention payouts. Bloomberg reports Yahoo paid $230M after factoring $40M in retention payments.
    • Yahoo announced the Polyvore acquisition last Friday, without giving a price. Re/code notes Polyvore had ~9M U.S. unique visitors in June (per comScore), up 36% Y/Y.
    • Thanks in part to its Alibaba IPO windfall, Yahoo had $7B in cash/investments at the end of Q2, and $1.2B in debt.
    | Aug. 3, 2015, 3:58 PM | 17 Comments
  • Jul. 31, 2015, 5:34 PM
    • Polyvore, whose site and apps bear a strong resemblance to Pinterest, relies on its community to deliver fashion/beauty product recommendations to other users, via the Pinterest-like "sets" they create. The company generates revenue by driving referral traffic to online retailers whose products are displayed.
    • Yahoo (NASDAQ:YHOO) is buying Polyvore for an undisclosed sum. Marissa Mayer: "Polyvore has perhaps the most amazingly engaged digital community of passionate style lovers creating shoppable content anywhere ... We believe that bringing this type of community and commerce-driven experience to Yahoo’s industry-leading content will transform the user experience across our digital magazines and verticals. And, when it comes to advertising, Polyvore’s technology will bring a proven native ad model, new compelling native ad formats, and strong advertising relationships with more than 350 retailers to Yahoo’s fast-growing native advertising platform, Yahoo Gemini."
    • Polyvore CEO Jess Lee will join Yahoo and report directly to Mayer.
    • Notable Yahoo acquisitions: Flurry, BrightRoll, Tumblr
    | Jul. 31, 2015, 5:34 PM | 14 Comments
  • May 27, 2015, 2:47 AM
    • Several other Internet giants reached out and held early discussions about buying Flipboard in recent weeks, including Yahoo (NASDAQ:YHOO) and Google (GOOG, GOOGL), although those talks involved ideas around how products would be integrated rather than centering around price, sources told WSJ.
    • Talks with Twitter (NYSE:TWTR) went further, discussing a $1B+ all-stock deal, but those negotiations have largely stalled since April.
    • Previously: Report: Twitter held talks to buy Flipboard for over $1B (May. 25 2015)
    | May 27, 2015, 2:47 AM | 8 Comments
  • May 12, 2015, 10:34 AM
    • Though the Nasdaq is down 0.9%, Yahoo (YHOO +1%) is higher following news Verizon is acquiring AOL (i.e. the company Starboard Value dreamed about merging with Yahoo) for $4.4B. Demand-side/programmatic ad tech platform owner Rocket Fuel (FUEL +3.4%), which competes with AOL's ad tech ops, is also up.
    • Citi's Mark May: "We view this deal as a positive for YHOO as it shows there are strategic buyers for this type of asset and because we view YHOO as a strong asset that is currently only valued at 1x our 2016 EBITDA estimate." With Yahoo spinning off its Alibaba stake later this year and exploring options for its Yahoo Japan stake, core Yahoo might soon be available by itself.
    • Last week, Rocket Fuel received an unsolicited $350M buyout offer from rival Gravity4 (and jumped in response). However, questions remains about Gravity4's ability to finance the bid, which has been viewed by many as a publicity stunt.
    | May 12, 2015, 10:34 AM | 4 Comments
Company Description
Yahoo! Inc is a technology company. It offers search, content and communication on mobile phone, tablet or desktop.