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Verizon is a front-runner in Yahoo auction

Friday, July 22, 2016 - 01:15

Yahoo is focusing on Verizon as the potential buyer of its core business. Bobbi Rebell reports.

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Yahoo is zeroing in on Verizon as the likely buyer of its core business. Negotiations between the two companies are continuing, sources told Reuters, and no agreement has yet been reached. A deal would boost Verizon's AOL internet business, which the company bought last year for $4.4 billion, by giving it access to Yahoo's advertising technology tools, as well other assets such as search, mail, messenger and real estate. James Ratcliffe, director of equity research at The Buckingham Research Group. (SOUNDBITE) JAMES RATCLIFFE, DIRECTOR, EQUITY RESEARCH, THE BUCKINGHAM RESEARCH GROUP, (ENGLISH) SAYING: "Historically, though, it's been tough for telecoms when they try to move the value chain to above, what I call, the nuts and bolts pipes business and out of sort of traditional business services, in particular, to offer more extensive consumer offering. So, it's a tough challenge on that front." The sale would mark the end of Yahoo as an independent operating company. But it would still be the owner of a 35.5 percent stake in Yahoo Japan, as well as a 15 percent interest in Chinese e-commerce company Alibaba. And those two stakes still account for most of Yahoo's $37 billion market capitalization.

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Verizon is a front-runner in Yahoo auction

Friday, July 22, 2016 - 01:15