Verizon Finalizes $4.8 Billion Yahoo Deal

[elisvac]

@digitaldew I remember the days of Excite, Lycos, Yahoo, and Naughty.com. Truly the end of an era.

 

[jinxy]

@elisvac I remember the others but wtf was naughty.com?

 

[pawnnolonger]

@elisvac There goes Boardwalk

 

[shaseeksgod]

@digitaldew My only worry is what will happen to my fantasy baseball league that is on Yahoo Sports.

 

[digitaldew]

@shaseeksgod A Verizon intern will be assuming direct control of your team.

 

[tpick]

@shaseeksgod 1 dollar per transaction, or you can pay 20 dollars a month for unlimited transactions but after 10 transations in amonth, you can only do a transaction once every 24 hours.

 

[christopherv]

@digitaldew Congratulations to yahoo for attracting a buyer against all odds.

 

[geoffbob]

@digitaldew yahoo finance and fantasy sports need to be saved here

 

[rabelzthemc]

@digitaldew is there a consensus on what this will do to yahoo's share price?

 

[digitaldew]

@rabelzthemc General consensus says that Yahoo will jump up a couple points and that Verizon's stock might take a little hit.

 

[zafarsolvent]

@digitaldew this response is essentially the generic outcome for acquisitions, seen notably with the recent Microsoft/LinkedIn acquisition announcement.

 

[lonely1987]

@zafarsolvent To expand on this, here's my understanding. Usually the company that is being acquired will go up because in order to get the company to sell, they will need an offer they can't refuse (generally slightly more than the company is considered to be worth). The opposite happens for the company that is paying because they are paying slightly more than the company is worth.

 

[keatongtsteven]

@rabelzthemc Just ran a core value analysis as I'm thinking of closing a yahoo position. Rough numbers I had approx $35.3 a share for alibaba, $1 per share for yahoo Japan royalties, and $5 per share for vz deal on core assets, for a total share price of $41.3 per share, anything above $41 and I'm out tomorrow.

 

[rabelzthemc]

@keatongtsteven that was my thought, too. i bought yhoo for ali baba and wanted to get out at 45. i'm out tiday regardless

 

[lisaxo]

@keatongtsteven The only thing you're missing is the patent portfolio. They're hoping to get ~$1B for that, or about a buck a share.

 

[keatongtsteven]

@lisaxo Great catch, I totally missed that. Sadly my sell at 41 is not hitting inspite the obvious valuation. Price is truth.

 

[zoleee]

@rabelzthemc when a buyout occurs, the purchasing company's share price almost always drops a bit and the bought out company's stock will rise.

 

[cuppycakers]

@zoleee Why?

 

[nky1]

@cuppycakers Also, existing shareholders might not like the new deal. Current shareholders like the company due to several reasons, such as management, product, strategy etc. and some of these points might change with the acquisition of a new company.

 

[resjudicata]

@digitaldew I just feel like Parks and Rec predicted these larger and larger acquisitions would happen.

"I Love you Verizion Chipotle Exxon"