Verizon confirms interest in Yahoo – report - Mobile World Live

Verizon confirms interest in Yahoo – report

08 FEB 2016

Verizon chairman and CEO Lowell McAdam confirmed the company is considering a bid for Yahoo, CNBC reported.

“We have to understand the trends that we are seeing and some of their results now. But then at the right price I think marrying up some of their assets with AOL under [CEO] Tim Armstrong’s leadership would be good,” McAdam (pictured) commented.

A deal with Yahoo would be consistent with Verizon’s strategy as it acquired AOL for $4.4 billion last year, which McAdam said Verizon has kept separate from the core company.

He added that AOL could be made into “something special” by adding additional media pieces to it. For instance, AOL acquired Millennial Media in September.

In December last year, Verizon CFO Fran Shammo said the company would consider a bid for Yahoo “if we see there is a strategic fit and it makes sense for our shareholders and we can return value… All I can say is we don’t know what Yahoo’s board will decide. It’s too early to know.”

As for Yahoo, although its Q4 2015 revenue crept up by 1.6 per cent to $1.27 billion, the company reported a loss of $4.44 billion, compared with net earnings of $166 million in the year ago quarter.

The results were announced last week. At the same time, the company confirmed it would consider selling off some formerly core assets. However, Verizon might not be the only party eyeing Yahoo. Other potential suitors include News Corp and private equity firm TPG.

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Saleha Riaz

Saleha joined Mobile World Live in October 2014 as a reporter and works across all e-newsletters - creating content, writing blogs and reports as well as conducting feature interviews...More

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