Verizon Explores Lower Price or Even Exit from Yahoo Deal
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Re: Verizon Explores Lower Price or Even Exit from Yahoo Deal
#2Yahoo has some good stuff, but their brand-name is just so, so toxic now.
I hope that if the deal goes through (and I'm sure it will), Verizon will still keep the better Yahoo services running.
Re: Verizon Explores Lower Price or Even Exit from Yahoo Deal
#3OK, what's it going to take to keep tumblr running? That's literally all I care about here. Everything else in Yahoo can be gotten or done elsewhere, but tumblr's a social network, so there's value in preserving those connections.
Re: Verizon Explores Lower Price or Even Exit from Yahoo Deal
#4Verizon would be stupid not to walk away from the deal at this point.
Setting aside that $4 billion was clearly way too much, Verizon, as the parent company, would be liable for any lawsuits against Yahoo resulting from the last few leaks.
Re: Verizon Explores Lower Price or Even Exit from Yahoo Deal
#5Can anyone explain to me why Yahoo is not worth over $4B?
Re: Verizon Explores Lower Price or Even Exit from Yahoo Deal
#6Yahoo controls 8% of search traffic and costs $4bn. Google controls 64% of search traffic and costs $558bn. That's a 17-fold difference in the price for 1% of the traffic. Even more if you take US search traffic only (to exclude Yahoo Japan).
Verizon can get rid of the costly parts of Yahoo (mostly its media business) and have its own small Google to make cash. That was $1.8bn per year in 2015, while Yahoo's overall revenue stands at $3.9bn (Asia excluded). So Verizon buys the company at 1x revenue.
Who would quit such a deal?
Re: Verizon Explores Lower Price or Even Exit from Yahoo Deal
#7OK, what's it going to take to keep tumblr running? That's literally all I care about here. Everything else in Yahoo can be gotten or done elsewhere, but tumblr's a social network, so there's value in preserving those connections.
Import to Wordpress. They've been chronically unable to monetise Tumblr. Assume they could Geocities you at any moment.
Re: Verizon Explores Lower Price or Even Exit from Yahoo Deal
#8Is this related to the most recent hack? IE, are they valuing Yahoo as less now that there's more bad press?
Re: Verizon Explores Lower Price or Even Exit from Yahoo Deal
#9Yahoo controls 8% of search traffic and costs $4bn. Google controls 64% of search traffic and costs $558bn. That's a 17-fold difference in the price for 1% of the traffic. Even more if you take US search traffic only (to exclude Yahoo Japan). Verizon can get rid of the costly parts of Yahoo (mostly its media business) and have its own small Google to make cash. That was $1.8bn per year in 2015, while Yahoo's overall…
Is Search traffic really correlated with revenue? I was under the impression Google was mostly ads revenue.
Re: Verizon Explores Lower Price or Even Exit from Yahoo Deal
#10Verizon would be stupid not to walk away from the deal at this point. Setting aside that $4 billion was clearly way too much, Verizon, as the parent company, would be liable for any lawsuits against Yahoo resulting from the last few leaks.
I'm pretty sure that the latest round of negotiations would cover the part 'what if someone sues, who pays for it?". Also, Verizon got an awesome deal to buy Yahoo for $4 billion and there's no way they will walk away from it in their right mind.