Verizon buying Yahoo for $5 billion

Potatoe

Potatoe

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Well then.

http://thenextweb.com/insider/2016/07/24/verizon-buying-yahoo-5-billion/

How long until they end up selling it for a fraction of that?

Comcast owns a stake in Vox, AOL has sites like TechCrunch and HuffPo, now Verizon is taking over Yahoo's portfolio. Interesting to see these companies that I'd think should basically just provide infrastructure, being in the whole 'controlling the media' business.
 
Verizon actually bought AOL last year as well.

Edit: Both are bad moves, Verizon is betting on the past and past brands. You can't win the future with moves from the past. They got revenue and all, but neither of those two companies have momentum. They would have been better off spending their money on acquiring new rising brands.
 
CCarter said:
Verizon actually bought AOL last year as well.
Click to expand...

Ahh, interesting. That almost makes me wonder how much of this is really about owning decent digital brands, and how much of it is actually about having a platform to influence an older demographic of not so tech savvy people (AOL, Yahoo...Who else uses those sites?!)
 
I see this move more as an infrastructure move... yahoo provides a shitload of email addresses. Couple that with the aol acquisition (which has millions of subscribers to internet service and email addresses) and verizon is making a play into a fairly related wheelhouse, and by picking up 2 properties that can't really seem to be killed, despite the best internal efforts I could even dream up. Insulation from market changes by having an aging, luddite customer base and expansion of some core services that verizon has offered (myvzw email address, internet service etc)
 
This is Big Red you are talking about. VZ's market cap is $230 BILLION. Paying $4.8B is only 2% of their own value. Not exactly betting the farm on it. Now when Steve Ballmer made a $45B bid for Yahoo back in 2008, that would have been a much bigger risk to Microsoft (and tragedy / massive write-off).

Yahoo still has over a 1 Billion eyeballs coming to it's sites every month. That generated around $5B last year in revenue so there is obviously a lot of value still in Yahoo's core business (Yahoo Mail, Yahoo Finance, Sports, etc)

Verizon can now efficiently target new customers (and current customers) with Yahoo's massive ad platform and trim the fat from other areas they deem not worthy. After last years AOL acquisition they obviously have experience after pulling back the curtains and digging down and seeing the synergy between the two. Yahoo deal is basically the same purchase except I think they got a better price with Yahoo.
 
"And there’s Tumblr and Flickr to consider as well. It’s not clear what Verizon’s plans are for Yahoo yet — it could operate it as a subsidiary, or wrap it all under the Verizon cloak — so there’s reason to be concerned your favorite service may vanish or change drastically."​

Oh no! No more expired Tumblr networks!
 
Hope they don't mess with media.net.
 
Verizon Cellular data + AOL/Yahoo Mobile/Desktop Browsing data
 
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