Verizon, Comcast, News Corp, Time and firms ‘private equity’ among potential stakeholders in your business popular Internet
Giants of the media and telecommunications and private equity firms are among possible interested in buying the core business of Internet Yahoo Inc. as the iconic Silicon Valley company evaluates a sale.
Among the companies that would explore an acquisition are Verizon Communications Inc. and IAC / InterActive Corp., linked to the entrepreneur Barry Diller, with the matter they said. Other interested parties in portions of Yahoo, if available, would be News Corp. owns The Wall Street Journal, and the magazine publisher Time Inc. executives said with knowledge of the situation.
The private equity firm TPG Capital has studied buying Yahoo media properties, he said a person aware. A Yahoo spokeswoman did not respond to requests for comment.
Despite the problems of Yahoo, potential buyers would be attracted by the broad scope of the company, since its properties attract more than 200 million visitors US monthly. In the case of private equity companies, the motivation could be a purchase of Yahoo would allow them to make a profound restructuring, which would be difficult as publicly traded. A private equity firm could, for example, decide squeeze cash flow while Yahoo cut investments.
The board of Yahoo Inc. considered important strategic meetings scheduled for this week, reported Tuesday The Wall Street Journal, including the sale of its core business and whether to proceed with the spin-off of its stake in the giant Chinese e-commerce Alibaba Group, whose current value exceeds $ 30,000 million.
Yahoo may choose not to sell their core business. Brian Wieser, an analyst at Pivotal Research Group, said Tuesday in a research note that values the operation at some US $ 1,900 million, not counting the cash. Another analyst, Youssef Squali of Cantor Fitzgerald, had valued at US $ 3,900 million, not counting his cash.
Both figures would be higher than the negative value that investors assigned to the core business of Yahoo taking into account its stakes in Alibaba and Yahoo Japan. 15% of Yahoo in Alibaba would be worth about US $ 32,000 million while its 35% in Yahoo Japan would be around US $ 8,500 million.
Robert Peck, an analyst at SunTrust, he said there could be many buyers logic of its Internet assets, including Verizon, AT &. T Inc., Comcast Corp., Walt Disney Co. and News Corp
Who ultimately acquire the main operation of Yahoo inherit some serious problems. Its traditional strength, type banner ad sales to large advertisers, is in a general decline. The company, which once was the first destination for many brands when it comes to spending their advertising budgets online, has been eclipsed by Facebook Inc. and Google Inc. Yahoo is expected to get 4.4% of the market for digital advertising American in 2015, that moves US $ 58,120 million a year, compared to 5.1% in 2014, according to research firm eMarketer.
For Verizon, the acquisition would boost its growing business of advertising technology . The telecommunications company has invested US $ 4,400 million in AOL in June. While AOL has specialized in helping third party websites to sell more ads, Yahoo brings a huge trove of data registration and email addresses. The combined reach of AOL, data from cell division of Verizon and Yahoo information could create a formidable advertising technology giants like Google and Facebook rival.
Yahoo and AOL have been linked in the past as potential partners in a merger. In addition, AOL CEO Tim Armstrong, Verizon continues to work and be well positioned to lead a combined Yahoo-AOL. However, an agreement of this kind would also create redundancies. AOL, for example, has a video advertising platform that forged around Adap.tv acquisition in 2013. Yahoo bought a similar company, BrightRoll last year.
Comcast also has I been improving advertising technology capabilities through acquisitions of companies like FreeWheel and Visible World. For IAC, whose portfolio of Internet properties including CollegeHumor and About.com -and who recently decided to spin off its subsidiary Online Dating Match Group Inc.- a deal with Yahoo would provide an active high profile with a huge range of platforms phones.
Other analysts point to the Japanese SoftBank Group Corp. as a contender to stay with Yahoo Internet business.
The reasons are less clear for traditional media companies . Yahoo still generates billions in revenue pu-blicitarios and has a major sales team. The audience data and direct consumers of Yahoo could be valuable for a company like Disney to promote its theme parks and movies. AT & T might consider using the information you have Yahoo and try to match what Verizon intends to do with its acquisition of AOL
David Benoit, Shalini Ramachandran, Jeffrey A. Trachtenberg and I Lukas. . Alpert contributed to this article.
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