Yahoo Finance Here's How Investors are Reacting to Verizon's Purchase of Yahoo Inc.
Verizon VZ has won the bidding war, and it will soon own Yahoo’s YHOO core internet properties. The assets will be bought out in a cash transaction worth $4.83 billion. Synergies are expected to be realized between Yahoo and Verizon’s AOL Internet operations, and by adding Yahoo to its portfolio, Verizon will have more exposure to advertising revenues. The company looks like it will have some advantages with regards to capitalizing on the coveted mobile ads space, but it will still be a far cry from being an advertising leader like Facebook FB and Google GOOG GOOGL.
Today, VZ and YHOO shares are down by 0.64% and 2.65% respectively. Investors have been buzzing on social media, and here’s how a few of the naysayers have are reacting to the deal.
There is another perspective, and some investors hold a great deal of optimism and visualize great things to come as a result of this acquisition.
In addition to the optimism and pessimism surrounding the deal itself, a lot of the reactions to the deal revolve around uncertainty regarding whether or not Marissa Mayer is staying at Yahoo after the acquisition is finalized. There are also many tweets praising or dissing Mrs. Mayer’s performance as the CEO of Yahoo.
Bottom Line
Changes are bound to take place for Yahoo when it comes under Verizon’s umbrella. It’s still too early to tell how the deal will pan out for investors, so it may be best to hold off on buying shares of either company right now. What’s certain is that there is a wide range of opinions among investors. Both companies are under a lot of scrutiny, so it will be interesting to see how Verizon seeks to quell the current fears of VZ stock holders.
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