Verizon (VZ - Free Report) has won the bidding war, and it will soon own Yahoo’s core internet properties. The assets will be bought out in a cash transaction worth $4.83 billion. Synergies are expected to be realized between Yahoo and Verizon’s AOL Internet operations, and by adding Yahoo to its portfolio, Verizon will have more exposure to advertising revenues. The company looks like it will have some advantages with regards to capitalizing on the coveted mobile ads space, but it will still be a far cry from being an advertising leader like Facebook and Google (GOOG - Free Report) (GOOGL - Free Report) .
Today, VZ and YHOO shares are down by 0.64% and 2.65% respectively. Investors have been buzzing on social media, and here’s how a few of the naysayers have are reacting to the deal.
$VZ $YHOO Two Black Holes Merging.Just press play to watch two black holes merge. Inspired by VZ buying Yahoo's... https://t.co/v1AB6vWePN
— Kirk Lindstrom (@KirkLindstrom) July 25, 2016
They made a baby & called it #YahooVerizon? $YHOO sold to $VZ for $5bn. Forecast epic declines & giant rises. Join https://t.co/ZpYfZuw6tK !
— Hourly Stocks (@HourlyStocks) July 25, 2016
When Marissa started, $YHOO had the 2nd largest travel site on the web, behind $TRIP. She shuttered it, and sold YHOO for 1/2 TRIPs value.
— Travis Katz (@traviskatz) July 25, 2016
There is another perspective, and some investors hold a great deal of optimism and visualize great things to come as a result of this acquisition.
Interesting combo. $YHOO $VZ
— Darnell Lockett (@DarnellCEO) July 25, 2016
$YHOO is going to make an amazing addition to the $VZ brand. @verizon needs to aggressively focus on @AOL @aim and @Yahoo Messenger sync
— @WesTolbert (@WmTolbert) July 25, 2016
Unlikely not long ago, $VZ stepping up as biggest challenger to $FB $GOOGL internet ad duopoly https://t.co/IxGux0O8Wj
— Mike Krey (@IBD_MKrey) July 25, 2016
In addition to the optimism and pessimism surrounding the deal itself, a lot of the reactions to the deal revolve around uncertainty regarding whether or not Marissa Mayer is staying at Yahoo after the acquisition is finalized. There are also many tweets praising or dissing Mrs. Mayer’s performance as the CEO of Yahoo.
Yahoo stock rose 151% in Marissa Mayer's tenure https://t.co/4Bps8zQWSR @readDanwrite $YHOO pic.twitter.com/f9aeQcbIhN
— Yahoo Finance (@YahooFinance) July 25, 2016
shattered by Mayer's staying @ $YHOO after core sale to $VZ for $4.83 billion .@DRJAMESCABOT https://t.co/zCoadZAeJU pic.twitter.com/9V7aIICrm6
— Max Maxwell (@maxjcm) July 25, 2016
@readDanwrite $YHOO market cap used to be $100B. Mayer hired to sell assets for $5B and hold $30B of $BABA
— Terence Channon (@terencechannon) July 25, 2016
Yahoo CEO's future is uncertain after Verizon's $4.83B acquisition of her company $YHOO $VZ https://t.co/BTJk5stbRk pic.twitter.com/3AbXKnCLMP
— Victoria Craig (@VictoriaCraig) July 25, 2016
Impressive run for @marissamayer !!! She joined $YHOO at $16, and is landing it at $38, much better positioned for a mobile, video future!
— Michael Ducker (@miradu) July 25, 2016
Keep telling yourself that.
Took millions from investors & got nothing done.
What a success!$YHOO https://t.co/DmJEF6r2f6
— (((D))) (@dschorrnyc) July 25, 2016
Bottom Line
Changes are bound to take place for Yahoo when it comes under Verizon’s umbrella. It’s still too early to tell how the deal will pan out for investors, so it may be best to hold off on buying shares of either company right now. What’s certain is that there is a wide range of opinions among investors. Both companies are under a lot of scrutiny, so it will be interesting to see how Verizon seeks to quell the current fears of VZ stock holders.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Verizon (VZ - Free Report) has won the bidding war, and it will soon own Yahoo’s core internet properties. The assets will be bought out in a cash transaction worth $4.83 billion. Synergies are expected to be realized between Yahoo and Verizon’s AOL Internet operations, and by adding Yahoo to its portfolio, Verizon will have more exposure to advertising revenues. The company looks like it will have some advantages with regards to capitalizing on the coveted mobile ads space, but it will still be a far cry from being an advertising leader like Facebook and Google (GOOG - Free Report) (GOOGL - Free Report) .
Today, VZ and YHOO shares are down by 0.64% and 2.65% respectively. Investors have been buzzing on social media, and here’s how a few of the naysayers have are reacting to the deal.
There is another perspective, and some investors hold a great deal of optimism and visualize great things to come as a result of this acquisition.
In addition to the optimism and pessimism surrounding the deal itself, a lot of the reactions to the deal revolve around uncertainty regarding whether or not Marissa Mayer is staying at Yahoo after the acquisition is finalized. There are also many tweets praising or dissing Mrs. Mayer’s performance as the CEO of Yahoo.
Bottom Line
Changes are bound to take place for Yahoo when it comes under Verizon’s umbrella. It’s still too early to tell how the deal will pan out for investors, so it may be best to hold off on buying shares of either company right now. What’s certain is that there is a wide range of opinions among investors. Both companies are under a lot of scrutiny, so it will be interesting to see how Verizon seeks to quell the current fears of VZ stock holders.
The Zacks Rank is a truly marvelous trading tool. Our ranking system has beaten the S&P 500, yielding an average return of 25% per year for the last 29 years! Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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