Menu
Verizon to bid US$3b for Yahoo’s core Internet business

Verizon to bid US$3b for Yahoo’s core Internet business

This the second-round bid and may be followed by a final bidding cycle

Verizon Communications will be bidding about US$3 billion for the Internet assets of ailing Yahoo, according to a newspaper report.

The communications company will try to beat other potential bidders such as private-equity firm TPG with a deal that would likely aim to combine Yahoo Web properties, with over 1 billion users a month, with Verizon’s growing business in online ads, the Wall Street Journal reported late Monday.

The bidding is far from final and Yahoo is expected to hold at least one more cycle of bidding, WSJ said quoting people familiar with the matter. But the price offered by Verizon could be an indicator of which way the fight for the acquisition of the Internet company is going.

Verizon is not unfamiliar to the acquisition and integration of Web companies after its 2015 acquisition of AOL for $4.4 billion.

Yahoo posted a loss of $99 million on revenue of a little over $1 billion in the first quarter of this year. Revenue in the first quarter of last year was over $1.2 billion.

Yahoo had at one point last year considered spinning off its 15.4 percent stake in Alibaba Holding Group, through a company called Aabaco Holdings, but held back on the move because of uncertainties about potential tax implications.

A powerful investor group, Starboard Value, countered that the proposed spin-off of Aabaco was not Yahoo’s best option, and the company should instead explore the sale of Yahoo’s core business of search and display advertising, while leaving Yahoo’s ownership stakes in Alibaba and Yahoo Japan in the existing corporate entity.

The company said when announcing its first quarter earnings that it had formed a committee of independent directors to consider “strategic alternatives," while continuing to consider the reverse spin-off of its Internet assets to a newly formed company, which was mooted by the company in December.

The Alibaba stake is worth far more than the Internet business, with some estimates putting it at close to $30 billion. A number of companies have shown interest in investing in Yahoo’s Internet business, including Twitter, which for a while reportedly considered a possible deal.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags Yahooverizon

Featured

Slideshows

Educating from the epicentre - Why distributors are the pulse checkers of the channel

Educating from the epicentre - Why distributors are the pulse checkers of the channel

​As the channel changes and industry voices deepen, the need for clarity and insight heightens. Market misconceptions talk of an “under pressure” distribution space, with competitors in that fateful “race for relevance” across New Zealand. Amidst the cliched assumptions however, distribution is once again showing its strength, as a force to be listened to, rather than questioned. Traditionally, the role was born out of a need for vendors and resellers to find one another, acting as a bridge between the testing lab and the marketplace. Yet despite new technologies and business approaches shaking the channel to its very core, distributors remain tied to the epicentre - providing the voice of reason amidst a seismic industry shift. In looking across both sides of the vendor and partner fences, the middle concept of the three-tier chain remains centrally placed to understand the metrics of two differing worlds, as the continual pulse checkers of the local channel. This exclusive Reseller News Roundtable, in association with Dicker Data and rhipe, examined the pivotal role of distribution in understanding the health of the channel, educating from the epicentre as the market transforms at a rapid rate.

Educating from the epicentre - Why distributors are the pulse checkers of the channel
Kiwi channel reunites as After Hours kicks off 2017

Kiwi channel reunites as After Hours kicks off 2017

After Hours made a welcome return to the channel social calendar last night, with a bumper crowd of distributors, vendors and resellers descending on The Jefferson in Auckland to kickstart 2017. Photos by Maria Stefina.

Kiwi channel reunites as After Hours kicks off 2017
Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Show Comments