Welcome to the Swan Song issue of M&A Daily
Yahoo (YHOO) CEO Marissa Mayer just concluded her final earnings call, in which she mentioned that:
As this is the first time she has mentioned the Apple partnership, it set off interest among analysts and journalists. As part of their collaboration, Yahoo Search can be set as the default search engine in Safari, but it is possible that Mayer was referring to something newer and bigger than that... Meanwhile, Yahoo is in its final days as an independent company. Earlier this week, it received bids from Verizon (NYSE:VZ), Dan Gilbert, Vector Capital, TPG, and AT&T (NYSE:T). Mayer was terse about the topic on her call, saying only that:
Our board's independent strategic review committee, which is leading a well-run, robust process, continues to manage this effort. And we are making great progress… While we have no announcement today, I can say we are deep into the process of evaluating proposals and alternatives, and will update our shareholders as soon as is prudent.
At this point, she has dragged her feet as long as possible. More news on this by the end of this month. Who will be the winner? Probably, Verizon. One clue is that Yahoo is actively looking for a buyer for its patent portfolio. Verizon was the only one of the top bidders to not want those patents, so the separate IP sales process is consistent with an expectation that VZ is the most likely buyer.
Elon Musk expects a majority of shareholders to support the Tesla (NASDAQ:TSLA) acquisition of SolarCity (SCTY). It is unclear why.
The DuPont (DD) and Dow (DOW) shareholders approved their merger.
Today is the HSR filing deadline for the Thoma Bravo deal with Imprivata (NYSE:IMPR).
I mean, in five years the Corleone Family is going to be completely legitimate.- Michael Corleone in The Godfather
Slowly, slowly bitcoin is going mainstream. A big next step will be the publicly-traded bitcoin trusts, including the Winklevoss Bitcoin Trust ETF (COIN). But before COIN even launches, a competitor has arrived with a substantial improvement. This month, SolidX announced a bitcoin trust that has secured insurance against theft or the loss of bitcoins in its trust. Once this product is on the market, it is likely to substantially increase the demand for bitcoin. You can exploit the potential opportunity of such a price move here.
Elsewhere on Seeking Alpha
- Buffett Finds A Gem (BRK.A/BRK.B)
- SoftBank's Acquisition Of ARM Is Misguided (OTCPK:SFTBY, ARMH)
- How Exxon Benefits From InterOil Acquisition (XOM, IOC)
- What's Good On Netflix? (NFLX, AMZN)
Disclosure: I am/we are long YHOO, BRK.A, BRK.B, NKA, BITCOIN.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: Chris DeMuth Jr and Andrew Walker are portfolio managers at Rangeley Capital. We invest with a margin of safety by buying securities at discounts to their intrinsic value and unlocking that value through corporate events. To maximize returns for our investors, we reserve the right to make investment decisions regarding any security without notification except where notification is required by law. We manage diversified portfolios with a multi-year time horizon. Positions disclosed in articles may vary in sizing, hedges, and place within the capital structure. Disclosed ideas are related to a specific price, value, and time. If any of these attributes change, then the position might change (and probably will).
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.