Yahoo's golden age seems to be behind us, but their internet business is still attractive to other companies and PE firms. Interest is mostly justified by the more than 200 million visitors it has every month in the US.
Among the lurkers, we can find Verizon, News Corp and Time Inc. Also, PE firms such as TPG Capital have been looking to acquire some assets from Yahoo, who still houses almost $30 billion in Alibaba shares. And this last fact me be the reason for selling its core business: while independent analysts value the company anywhere between 2 to 3 billion, excluding cash, Yahoo's market value is currently $32 billion, of which $30 billion come from the Alibaba shares.
In any case, Yahoo's core business is shrinking due to market share loss and an acquisition could revamp some of its abilities. Analysis mention that Verizon could merge it with its other acquisition, AOL. Other potential buyers could leverage on Yahoo's massive reach if the audience matches and use the data to target advertising more precisely and effectively.
While it looks like it may be a while until a deal is closed, Yahoo's future doesn't look bright on its own.
No comments:
Post a Comment