Yahoo! Inc.(YHOO)- NASDAQ
  • Mon, Sep. 12, 6:21 PM
    • "Job changes" are ahead for Yahoo (YHOO +1.3%) as it heads for a merger with AOL (VZ +1.5%), says AOL chief Tim Armstrong, but that doesn't necessarily mean cuts.
    • Speaking at TechCrunch Disrupt, Armstrong said the deal's "not about job cuts" but synergies would inevitably lead to changes.
    • "Google is search, Facebook is social, we're going to be brand," Armstrong said in outlining a strategy that builds its media brands to leverage ads across all its platforms.
    • On Friday, Yahoo posted the lengthy sale proxy for its $4.83B acquisition by Verizon and AOL.
    | Mon, Sep. 12, 6:21 PM | 18 Comments
  • Fri, Sep. 9, 7:29 PM
    • In a lengthy acquisition proxy filed tonight, tied to its eventual $4.83B deal to be acquired by Verizon (VZ -3.3%), Yahoo (YHOO -3.3%) revealed that as many as 51 parties expressed initial interest in buying the company after Feb. 19, a number that whittled down to 32 signing confidentiality agreements, then 19 in early April and 14 by April 18.
    • The filing also provides voluminous details of discussions around an (unconsummated) deal between Yahoo, Yahoo Japan and Alibaba.
    • As forecast, what's left after the Verizon sale ("RemainCo") will be only cash and marketable securities, shares in Alibaba, shares in Yahoo Japan, other minority equity investments, and IP assets held in Excalibur. It will be an investment company with a new ticker.
    • Yahoo would owe a $144.8M termination fee if it bolts for a "superior proposal."
    • Along with authorizing the sale to Verizon, shareholders will be asked to consider a nonbinding advisory proposal to approve compensation payable to Yahoo execs -- and "certain directors and executive officers of Yahoo have interests in the Sale Transaction that may be different from or in addition to the interests of Yahoo stockholders generally."
    • In particular, Yahoo restricted stock units held by those employees who would be heading to Verizon would be replaced with cash-settled Verizon RSU awards. CEO Marissa Mayer has $86.4M in Yahoo stock options and RSU awards outstanding; CFO Ken Goldman has $27.1M; Chief Revenue Officer Lisa Utzschneider $21.8M; General Counsel Ronald Bell $16.2M. Co-founder and "Chief Yahoo" David Filo cashed out.
    • Golden parachutes tied to the sale, for named execs: Mayer, $44M; Goldman, $12.2M; Utzschneider, $20.5M; Bell, $12.4M; Filo, $65,742.
    • After hours: VZ -0.2% ; YHOO -0.4%.
    | Fri, Sep. 9, 7:29 PM | 64 Comments
  • Tue, Aug. 2, 2:39 PM
    • Yahoo (YHOO -0.7%) has answered employee questions about its deal to be acquired by Verizon (VZ -1.3%) for $4.8B, and one loomed larger than others: The company says there won't be layoffs between now and the deal's completion, set for Q1.
    • Yahoo has laid off at least 1,600 since initiating cuts in February. And while job losses may be off for now, analysts had predicted heavy workforce cuts in the eventuality that Yahoo were acquired by someone like Verizon.
    • "At this time, Yahoo is not planning any layoffs in anticipation of the transaction closing," the company said in one of two sets of answers (SEC filing). "Prior to the transaction closing, we will continue to operate our business independently, focus on achieving our corporate goals and manage employee performance in the ordinary course of business." Will there be layoffs after the transaction closes? "That is a decision for Verizon."
    • On CEO Marissa Mayer: "Marissa is committed to Yahoo, its employees and its stockholders and plans to see the company through the next phase of its transition to Verizon ... Post-closing Verizon will determine the leadership structure of the combined entity."
    • As expected, what's left after the Internet assets and real estate go -- now called "RemainCo" -- will retain stakes in Alibaba Group and Yahoo Japan along with non-core IP, and be renamed as a registered investment company. Employee shareholders of Yahoo stock will continue to hold RemainCo stock after the closing.
    | Tue, Aug. 2, 2:39 PM | 19 Comments
  • Mon, Jul. 25, 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)
    | Mon, Jul. 25, 7:22 AM | 57 Comments
  • 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)
    | Sun, Jul. 24, 2:53 PM | 140 Comments
  • 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, 12:44 PM | 35 Comments
  • Fri, Jul. 22, 8:48 AM
    • Verizon (NYSE:VZ) is close to landing a deal to acquire Yahoo (NASDAQ:YHOO), according to a Bloomberg headline.
    • An announcement on a deal is anticipated within a few days.
    • Shares of Yahoo are up 1.21% premarket to $39.32. VZ -0.36% to $55.17.
    | Fri, Jul. 22, 8:48 AM | 60 Comments
  • Thu, Jul. 14, 5:32 PM
    • Monday is the final date to enter a bid for Yahoo's (NASDAQ: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, 5:32 PM | 11 Comments
  • 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.
    | Tue, Jun. 14, 2:21 PM | 46 Comments
  • 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, 4:08 PM | 36 Comments
  • Thu, Jun. 9, 9:48 AM
    • CNBC's David Faber reports Yahoo (YHOO +1.1%) as having received multiple bids above $5B for its core business. That would place Verizon (VZ flat) - which is reported to have offered in the area of $3.5B - among the lower end of bidders.
    | Thu, Jun. 9, 9:48 AM | 70 Comments
  • 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.
    | Tue, Jun. 7, 2:23 AM | 43 Comments
  • 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)
    | Thu, Jun. 2, 10:17 PM | 55 Comments
  • 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.
    | Wed, Jun. 1, 3:20 PM | 12 Comments
  • 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.
    | Thu, May 26, 8:33 PM | 21 Comments
  • 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, 11:12 AM | 65 Comments