We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Yahoo to Make Important Changes After Verizon Deal Closes
Read MoreHide Full Article
As soon as Yahoo’s acquisition by Verizon Communications Inc. (VZ - Free Report) is completed, there will be quite a few changes made to the combined company.
Following the news, shares of Yahoo were up 0.27% and shares of Verizon were up 0.27% within the trading session.
Over the last one year, Yahoo’s stock has outperformed the Zacks Internet Services industry, gaining 36.66% against the industry’s gain of 11.46%.
Changes Following the Deal Closure
Upon completion of the deal, Yahoo will get a new name Altaba. Yahoo's remaining business, which includes the Yahoo Japan and Alibaba stakes, along with convertible notes and non-core patents will become an investment company known as Altaba, Inc.
That’s not all.
Also, Yahoo’s CEO Marissa Mayer along with a few other directors will leave the new combined company. The directors include cofounder David Filo, Eddy Hartenstein, Richard Hill, Jane Shaw and Maynard Webb. Eric Brandt will become the chairman of the board. Yahoo said that the departure of these directors was not due to any disagreement or issue with its policies or operations.
The members who will remain in the new board are Brandt, Tor Braham, Catherine Friedman, Thomas McInerney and Jeffrey Smith.
The Back Story
In Jul 2016, Verizon agreed to pay $4.8 billion for Yahoo’s assets and real estate. The deal is expected to close early this year.
The Verizon deal closure has been facing several challenges as Yahoo faced a massive cyber-attack, wherein personal information of about half a billion of its users was tampered with. The company had disclosed two cases of massive data breach last year. In Dec 2016, Yahoo revealed its second hacking scandal that might have affected a billion of its customers. In September, Yahoo reported a data breach of 500 million users during 2014.
The Bottom Line
The purchase of Yahoo’s core assets is in line with Verizon’s long-term view to gain traction in the lucrative mobile advertising segment. Despite the speculation of a billion dollar discount in the purchase agreement between the parties in the wake of the data breach disclosures, Verizon has not changed any terms of the $4.83 billion transaction. However, the company has the option to seek renegotiation of purchase price or opt out of the deal.
Mercadolibre delivered a positive earnings surprise of 23.58% on average in the past four quarters.
Cognex posted a positive earnings surprise of 24.92% in the trailing four quarters.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Yahoo to Make Important Changes After Verizon Deal Closes
As soon as Yahoo’s acquisition by Verizon Communications Inc. (VZ - Free Report) is completed, there will be quite a few changes made to the combined company.
Following the news, shares of Yahoo were up 0.27% and shares of Verizon were up 0.27% within the trading session.
Over the last one year, Yahoo’s stock has outperformed the Zacks Internet Services industry, gaining 36.66% against the industry’s gain of 11.46%.
Changes Following the Deal Closure
Upon completion of the deal, Yahoo will get a new name Altaba. Yahoo's remaining business, which includes the Yahoo Japan and Alibaba stakes, along with convertible notes and non-core patents will become an investment company known as Altaba, Inc.
That’s not all.
Also, Yahoo’s CEO Marissa Mayer along with a few other directors will leave the new combined company. The directors include cofounder David Filo, Eddy Hartenstein, Richard Hill, Jane Shaw and Maynard Webb. Eric Brandt will become the chairman of the board. Yahoo said that the departure of these directors was not due to any disagreement or issue with its policies or operations.
The members who will remain in the new board are Brandt, Tor Braham, Catherine Friedman, Thomas McInerney and Jeffrey Smith.
The Back Story
In Jul 2016, Verizon agreed to pay $4.8 billion for Yahoo’s assets and real estate. The deal is expected to close early this year.
The Verizon deal closure has been facing several challenges as Yahoo faced a massive cyber-attack, wherein personal information of about half a billion of its users was tampered with. The company had disclosed two cases of massive data breach last year. In Dec 2016, Yahoo revealed its second hacking scandal that might have affected a billion of its customers. In September, Yahoo reported a data breach of 500 million users during 2014.
The Bottom Line
The purchase of Yahoo’s core assets is in line with Verizon’s long-term view to gain traction in the lucrative mobile advertising segment. Despite the speculation of a billion dollar discount in the purchase agreement between the parties in the wake of the data breach disclosures, Verizon has not changed any terms of the $4.83 billion transaction. However, the company has the option to seek renegotiation of purchase price or opt out of the deal.
Yahoo! Inc. Price and Consensus
Yahoo! Inc. Price and Consensus | Yahoo! Inc. Quote
Zacks Rank
Both Yahoo and Verizon carry a Zacks Rank #3 (Hold). Better-ranked stocks in the industry are Mercadolibre, Inc. (MELI - Free Report) sporting a Zacks Rank #1 (Strong Buy) and Cognex Corporation (CGNX - Free Report) carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Mercadolibre delivered a positive earnings surprise of 23.58% on average in the past four quarters.
Cognex posted a positive earnings surprise of 24.92% in the trailing four quarters.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>