News Verizon Buys Yahoo for $4.83B

Discussion in 'The Howard Stern Show' started by DDragon, Jul 25, 2016.

  1. DDragon

    DDragon VIP Extreme Gold

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    http://abcnews.go.com/Entertainment/wireStory/verizon-buys-yahoo-483b-marking-end-era-40847798

    Verizon is buying Yahoo for $4.83 billion, marking the end of an era for a company that once defined the internet.

    It is the second time in as many years that Verizon, extending its digital reach, has snapped up the remnants of a fallen internet star. The nation's largest wireless carrier paid $4.4 billion for AOL last year.

    Yahoo will be rolled into Verizon's AOL operations and CEO Marissa Mayer may be reunited with AOL CEO Tim Armstrong. Both were executives at Google for years and Armstrong tried unsuccessfully to convince Mayer to combine the two companies when they remained independent.

    "We have enormous respect for what Yahoo has accomplished: this transaction is about unleashing Yahoo's full potential," Armstrong said in a printed statement.

    Most analysts expect the deal to end the four-year reign of Yahoo's Mayer, who flopped in her attempts to turn around Yahoo.

    Mayer, though, told employees in a Monday email that she intends to stay without specifying for how long. "I love Yahoo, and I believe in all of you. It's important to me to see Yahoo into its next chapter," she wrote.

    Yahoo Inc., based in Sunnyvale, California, is parting with its email service and still-popular websites devoted to news, finance and sports in addition to its advertising tools under pressure from shareholders fed up with a steep downturn in the company's revenue during the past eight years.

    The slump deepened even as advertisers pour torrents of cash into what is now a $160 billion market for digital advertising, according to research firm eMarketer.

    Most of that money, however, has been flowing toward Google and Facebook, two companies that eclipsed Yahoo during its slide from an online sensation, once valued at $130 billion, to a dysfunctional also ran.

    After the sale is completed early next year, Yahoo will become a holding company for its two stakes in China's e-commerce leader, Alibaba Group, and Yahoo Japan. Those investments, made more than a decade ago, are worth more than $40 billion before taxes, making them by far the most valuable pieces of Yahoo. The holding company will drop the Yahoo name and adopt a new identify after Verizon takes control of the operating business.

    Yahoo also still has a patent portfolio that it intends to sell, and about $7.7 billion in cash. Verizon is buying Yahoo's real estate, along with the online operations.

    Yahoo has hired a succession of CEOs to engineer a comeback, but finally gave up after the high hopes that accompanied Mayer's arrival fizzled out.

    The sale could potentially result in thousands of layoffs. Mayer has already jettisoned 1,900 Yahoo workers since last September.

    If Mayer leaves following the sale, she will be in line to receive a severance package valued at $55 million.

    When millions of people began to flock to the internet with the advent of graphical web browsers in the 1990s, Yahoo was king. Co-founders Jerry Yang and David Filo began building a web directory as Stanford University computer graduate students in 1994, and Yahoo quickly established itself as the online hub for tens of millions of people. It proved that internet companies could indeed be profitable as other dot-com startups burned through millions of dollars.

    But Yahoo strayed from internet search in an attempt to build a multimedia business, clearing Google's path to supremacy. Yahoo failed to recognize the importance of social networking and was slow to make the leap into mobile devices like smartphones and tablets. Yahoo attempted to buy Google and Facebook in those formative years, but it was rebuffed and then it was dwarfed by them.

    By the time Yahoo's board began soliciting bids for the company's online operations, investors had concluded that business was being so badly mismanaged that it had become virtually worthless. Yahoo's market value consisted almost entirely of its Asian investments.

    Mayer told CNBC she is proud of her accomplishments at Yahoo, even though the company's annual revenue, after ad commissions, fell from $4.4 billion before her arrival to a projected $3.5 billion this year. "We set out to create a stronger, more modern, version of Yahoo and that's very much happened," she said.

    Despite Yahoo's travails, its operations are a prize at Verizon as the carrier it attempts to capitalize on the growing number of people living their digital lives on smartphones. Verizon already profits from the data plans that connect more than 100 million people using those devices to the internet; with AOL and Yahoo's services, Verizon is now looking to control more of the advertising on phones, rather than surrendering it to Google and Facebook.

    By bringing AOL and Yahoo together, Verizon is betting that it will be able to draw upon the best of both services to create more compelling apps and attract more advertisers.

    If Verizon fully owned Yahoo right now, it would generate about $3.6 billion in U.S. ad revenue this year to eclipse Microsoft for third place in the market, based on eMarketer's estimates. It would still be a very distant third in ad revenue, compared with Google's projected $27 billion, and Facebook's projected $10 billion.

    AOL owns popular media sites, like Huffington Post and TechCrunch, but Verizon primarily wanted its ad technology.

    While Verizon prizes Yahoo's ad services, it covets the hordes that still regularly visit to pick up their email, check the weather and catch up on current events, celebrity gossip and the stock market. The company is hoping to have a mobile audience of 2 billion people by 2020, with a goal of $20 billion in mobile revenue by that time.

    Yahoo says it has more than 1 billion users, including 225 million on its email service. The email users are an especially valuable part of Yahoo's audience because they tend to visit on a regular basis and log in to make it easier to track their interests for advertising purposes.

    Verizon won a five-month auction for Yahoo over a list of other bidders that included rival AT&T Inc., a group led by Quicken Loans founders Dan Gilbert and private equity firms that that specialize in buying distressed companies and trying to rehabilitate them.

    The deal, expected to close within the first three months of next year, still needs approval from Yahoo shareholders.

    Yahoo's stock fell 92 cents to $38.47 in early trading Monday.
     
  2. Bro

    Bro Oligarchical Corporatocracy VIP Gold

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    A revenue mac hine.
     
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  3. x76

    x76 Well-Known Member

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    Can I use the c-word? I need to use the c-word. NICE JOB MARISSA. Little blond bint.
     
  4. AcquiringSignal

    AcquiringSignal Girthy VIP

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  5. Bro

    Bro Oligarchical Corporatocracy VIP Gold

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    Sell
     
  6. FSFN

    FSFN Well-Known Member

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    Not guilty

    [​IMG]
     
  7. SouthernListen

    SouthernListen I don't follow the crowd. Sorry about that. VIP

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    I use Yahoo finance to track stocks because it's easy to use and I don't feel like setting up another site. But I haven't read any of their articles on it for years now. It's total shit.
     
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  8. Kool

    Kool Well-Known Member

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    Vahoo now?
     
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  9. wigtropolis

    wigtropolis Well-Known Member

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    she drove it into the ground
     
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  10. Bro

    Bro Oligarchical Corporatocracy VIP Gold

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    I'm gonna be pissed if they change the Yahoo home page.

    That's my home page.

    I will write my congressman if they change the Yahoo news format.
     
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  11. Santori

    Santori Piece of Shit Gold

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    I don't usually write this but....would hit ^^^
     
  12. lilbuddy67

    lilbuddy67 A man with breath-taking anger management issues Banned User

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    WaitWhat_.gif
     
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  13. wigtropolis

    wigtropolis Well-Known Member

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    she has her good days and her bad days.

    the millions make her have a lot more good days
     
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  14. lastlaugh

    lastlaugh Well-Known Member

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    The only thing I read are the comments.
     
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  15. Sea Slob

    Sea Slob Well-Known Member

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    I was thinking how lucky her husband is, but I bet she doesn't let him spend the money.
     
  16. wigtropolis

    wigtropolis Well-Known Member

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  17. Big Bad Booey

    Big Bad Booey Well-Known Member

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  18. stash

    stash 2017 Kimbra of All Media VIP

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    pretty hot.. and all that money. But I could never live with myself, settling for less than perfect like that.
     
  19. DuckDong

    DuckDong VIP Extreme Gold

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    That chick is the perfect example of failing up

    Brought in to save a company that had a 48 B market cap and offer on the table from Microsoft ... turned it down.

    Now selling for 4 Billion ...

    She will make all told 200 + Million.
     
    cg256 likes this.
  20. deadbeat

    deadbeat Well-Known Member

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    [​IMG]
     
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