Yahoo! Inc. (YHOO) - NASDAQ
  • 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
  • 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, 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 | 66 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
  • 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
  • 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
    | Wed, May 25, 10:23 AM | 4 Comments
  • Fri, May 20, 9:57 AM
    • Yahoo (NASDAQ:YHOO) is down 2.4% (better than the 6% decline it was tracking premarket) after last night's report that bids for the Internet pioneer's core business are coming in lighter than expected, at $2B-$3B.
    • CNBC's David Faber says sources are calling that report "completely wrong," noting that such a bid would be lower than the lowest of the bids seen in the first round of bidding. "Nobody has seen numbers of that type" in what has been a "fairly robust auction" at this point, Faber says.
    • "Could it be perhaps that Verizon (NYSE:VZ) would love to have it out there, the idea that it's coming in lower so that it conceivably could game the situation?" Faber asks. "I don't know."
    • The core business has more than $600M in EBITDA, including the losing parts, which would make for a very low multiple at $2B-$3B, he notes.
    • Now read Yahoo's Sale Could Still Derail »
    | Fri, May 20, 9:57 AM | 33 Comments
  • Thu, May 5, 1:25 PM
    • Though Yahoo's (YHOO +2.4%) efforts to sell its core business get far more ink, Alibaba's (BABA +3.7%) movements continue having a bigger impact on its shares. The web portal is trading near $37 today after Alibaba posted mixed FQ4 results - EPS missed due to large investments in areas such as local services and entertainment content, but revenue beat as annual sales growth accelerated to 39% from FQ3's 32%.
    • Driving the acceleration: Alibaba's Chinese retail marketplace (Taobao/Tmall) revenue rose 41% Y/Y to $2.84B, an improvement from FQ3's 35% growth. Marketplace GMV rose 24% to $115B, and Alibaba's monetization rate on these sales improved to 2.47% from 2.17%. International commerce revenue rose 21% to $308M, and cloud computing/Internet infrastructure revenue 175% to $165M.
    • Aggressive spending led Alibaba's costs/expenses to rise to 60% of revenue from 58% a year ago. Cost of revenue rose to 35% of revenue from 29%; R&D, sales/marketing, and G&A were either flat or down as a % of revenue. $118M in losses were recorded for Alibaba's share of its Koubei local services JV with Alipay parent Ant Financial. Alibaba ended FQ4 with $17.3B in cash and $9B in debt.
    • Yahoo's 384M-share Alibaba stake is currently worth $30.2B.
    | Thu, May 5, 1:25 PM | 16 Comments
  • Wed, May 4, 4:58 PM
    • AT&T (NYSE:T) is breaking up a 15-year hosting partnership with Yahoo (NASDAQ:YHOO), electing to give most of that business to Synacor (NASDAQ:SYNC).
    • Synacor has jumped 56% in after-hours trade; YHOO is flat in postmarket action.
    • In return for hosting AT&T's Web and mobile portals, Yahoo had shared revenues from the sites with the telecom, while AT&T customers got access to Yahoo's search engine and media services on the AT&T portal.
    • Yahoo's share came to about $100M/year, which will now go to Synacor, a company with a market cap of $44.5M.
    • Yahoo will still keep a small piece, continuing to host mail for AT&T customers. Yahoo says only that AT&T is still a "valued partner."
    | Wed, May 4, 4:58 PM | 26 Comments
  • Fri, Apr. 22, 7:14 PM
    • Yahoo (YHOO -0.5%) and advisers are set to spend the weekend narrowing down more than 10 first-round bids for its core business, ranging from $4B-$8B, Bloomberg reports -- with an eye to moving forward as soon as next week.
    • They'll aim for about seven finalists and plan to offer them increased access to internal docs and management.
    • The higher-end bids reportedly came from bidders who haven't spent as much time with Yahoo, which should lead to more scrutiny into the structure of the offers.
    • In addition to the known bidders (that hadn't denied reports) -- Verizon (VZ +1%), YP Holdings, TPG, and Bain/Vista Equity Partners -- one or two other strategic firms were involved.
    • Echoing earlier reports, SoftBank (OTCPK:SFTBY +3.4%) isn't in the bidding but is likely eager to talk with anyone who also wants the Yahoo Japan stake.
    • Despite the progress, a final decision is likely at least a month away.
    • Now read Yahoo Sale Could Reboot Online Ad Competition »
    | Fri, Apr. 22, 7:14 PM | 71 Comments
  • Wed, Apr. 20, 10:59 AM
    • With Yahoo's (YHOO +3%) first-round bid shortlist out, where was Daily Mail & General Trust (OTCPK:DMTGY)? The operators of the world's most-visited English-language website were a prominent late arrival to the Yahoo bidding scene, but took a back seat (joined by IAC, Comcast and Time Inc.) to Verizon, YP, Rakuten and private equity.
    • Daily Mail now says it didn't put a bid in with Yahoo by Monday's deadline, but it is in talks with parties interested in Yahoo. The publisher is up 0.6% in London.
    • Yahoo's process may become a full-fledged saga for 2016. Not only is the existing sale process quite likely to run into June, but secondary interest in the resulting asset mix from the likes of Alibaba (BABA +0.7%), SoftBank (OTCPK:SFTBY -0.1%) and Daily Mail could mean even more transfers of businesses ahead.
    • Alibaba had a strong (if less dramatic) case to become a dark horse, since it may have been able to pull off the functional equivalent of a highly tax-advantaged buyback.
    • Now read Yahoo: Who's Ready To Take On A Legacy Digital-Native Media Turnaround? »
    | Wed, Apr. 20, 10:59 AM | 15 Comments
  • Wed, Apr. 20, 10:31 AM
    • Yahoo (NASDAQ:YHOO) has moved up 3.3% out of Q1 earnings that beat some (previously reduced) expectations. Some key businesses (Mavens?) showed heavily declining rates of growth despite signs of life elsewhere.
    • Analyst opinions poured in, most with price target hikes. Oppenheimer's gone from $40 to $49 (implied 35% upside from yesterday's close), though due mainly to an increase in the value of Alibaba, as well as "our assumptions that Yahoo-core is sold for 8x EBITDA, BABA stake remaining un-taxed, and YJ sold on a taxable basis."
    • "While Mavens growth is slowing (+7% y/y vs. +26% in 4Q)," analyst Jason Helfstein says, "the company does appear to be executing on its plan to simplify products, reduce costs (sun-setting products, headcount reductions, office closures), and focus on higher margin ad-tech solutions around the company's web content and main verticals (news, sports, finance, lifestyle)."
    • Susquehanna boosted its target to $44 from $40, and Morgan Stanley's at $46 (implied 27% upside from yesterday's close) while Credit Suisse trimmed its target to $46, from $47.
    • Other target hikes: Nomura (to $39 from $34); RBC Capital (to $38 from $33); Axiom (to $37 from $36); Barclays (to $38 from $35); Citi (to $38 from $37); Piper Jaffray (to $40 from $31); Goldman Sachs (to $38 from $37).
    • Now read Yahoo: Who's Ready To Take On A Legacy Digital-Native Media Turnaround? »
    | Wed, Apr. 20, 10:31 AM | 4 Comments
  • Fri, Apr. 8, 7:37 AM
    | Fri, Apr. 8, 7:37 AM | 14 Comments
  • Thu, Apr. 7, 3:25 PM
    • If Verizon (NYSE:VZ) prevails with a bid for the core business (and Japan assets) at Yahoo (NASDAQ:YHOO), in an amount said to be less than $8B, Tim Armstrong of Verizon's AOL is liable to take charge of the Yahoo operation -- and Marissa Mayer is likely "gone," Bloomberg reports.
    • Of course, a proxy fight is still looming with Starboard, so Mayer and the board could be ousted even if Yahoo holds on to the assets.
    • Marni Walden, Verizon's executive VP, would assist Armstrong in running a combined Yahoo/AOL.
    • A brief jump into positive ground has ended as Yahoo has given back the gains, now down 1.1%.
    • Yesterday, Re/code reported that based on Yahoo's sale "book," the company's financial situation had become "increasingly dire," with revenue and earnings dropping 15% and 20% respectively.
    • Now read Why Activists Succeed - And Why They Will Change Yahoo »
    | Thu, Apr. 7, 3:25 PM | 22 Comments
  • Thu, Apr. 7, 2:58 PM
    • Yahoo (NASDAQ:YHOO) shares have jumped into positive ground, now up 1.2%, on news that Verizon (NYSE:VZ) is proceeding with a bid for its core assets.
    • Shares were down as much as 2.6% today.
    • Alphabet unit Google (GOOG, GOOGL) is also weighing its own bid, Bloomberg reports, with interest also showing up from Bain Capital and TPG. Time Inc. (NYSE:TIME) is still out there as well.
    • AT&T (NYSE:T) and Comcast (NASDAQ:CMCSA) are losing interest, Bloomberg also said, with Microsoft (NASDAQ:MSFT) also deciding it wouldn't bid.
    • Verizon might also put in for Yahoo's Japan interests, the report said.
    • Updated 3:06 p.m.: After a big spike into positive ground, Yahoo shares have gone negative again, -0.1%. Verizon is said to value the core business at less than $8B, vs. Yahoo's hopes for a $10B valuation, and has engaged three banks.
    • Now read Yahoo Should Be At Least $48 A Share »
    | Thu, Apr. 7, 2:58 PM | 30 Comments
Company Description
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
Sector: Technology
Industry: Internet Information Providers
Country: United States