Verizon Might Soon Acquire Marissa Mayer Yahoo

Verizon Communications Chief Executive Officer and Chairman, Mr. Lowell McAdam has shown interest in acquiring the stumbling Internet giant, Yahoo! Inc. according to the wireless network giant, Yahoo provides the right platform for the company to improve its business operations.

While talking to Jim Cramer of CNBC Mad Money, Mr. McAdam seized the opportunity to explain that the takeover of Yahoo is one par with the company’s three tier business plan. This is by expanding the company’s business by coming up with better connectivity, coming up with platform to enhance subscription along with the ownership of content that governs the ecosystem.

According to him, by combining the assets of Yahoo with AOL which is governed via collaborative leadership can actually turn out to be beneficial for the company. Verizon made the acquisition of VZ in May 2015 that was through a buyout which accumulated to $4.4 billion.

Earlier, Verizon completely refuted the rumors that surfaced via the New York Post article that was published on January 23 where the telecom industry disruptor had bid an amount worth $8 billion for Yahoo. However, the latest comments observed by Mr. McAdam depict that the company is actually interested in buying Yahoo since it will enable the company to grow in the long run with the help of mobile video and mobile advertisement.

Speculations regarding the Yahoo takeover have gained momentum lately since the company has been stumbling. The company reported results which were below analyst expectation and the growth was also quite stagnant under the leadership of Marissa Mayer- the Chief Executive Officer.

During the fourth trimester of the fiscal year of 2015, the company confirmed embracing a downward spiral trend where it reported almost 15% drop in revenues reaching an amount above $1 billion. The estimates were below the consensus made by Street which resulted in doubts regarding the potential of Ms. Mayer to change the fate of Yahoo. The workforce of Yahoo will be reduced by 15% to cope up with the turmoil.

The Internet behemoth has also agreed upon accepting potential bids for acquisition for its search business. It has plans to opt for a potential buyout through a spin off where it will retail its major liabilities and business assets with having 15% stakes in E-commerce giant, Alibaba. Moreover, Yahoo will come up with several turnaround strategies that will help them in making a comeback.

The idea laid forward by the Chief Executive Officer of Verizon seems a favorable deal for both the companies. Despite Yahoo has made several efforts to fight back to redemption it does not really seem that the company now has the potential to do so. Moreover, Marissa Mayer leadership has turned out to be quite vulnerable for the company without any growth actually involved which is yet another downside. Considering all the prospects, it seems like a sane decision to give ownership to Verizon who might just change the fate for the company.

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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