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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

#81

Can anyone explain to me why Yahoo is not worth over $4B?

The costs to run it are too high and haven't or can't be reduced. Granted, the demographics Yahoo can target and Yahoo's share of internet advertising aren't the most appealing, they did buy Flurry and others which were doing fine monetizing small shares of ad revenue.

Also, at this point, under-investing in security never pays.

Re: Verizon Explores Lower Price or Even Exit from Yahoo Deal

#82
post #74

Earlier quoted context omitted.

For Q3 2016 Google earned over 70% of its revenue and 80% of its advertising revenue from "Google websites" [1]. Google websites include search as well as YouTube, Gmail, et cetera . AdSense, AdMob or DoubleClick revenues make up the bulk of the other 20%. [1] https://www.sec.gov/Archives/edgar/data/1652044/000165204416... pages 31, 33

Good to know. I guess I have trained myself over years to skip the "sponsored results," and did not expect for them to be so important.

They are way more effective than basically any other form of online advertising, because the user has effectively just typed "I have intention to purchase X" into the search engine, and you as the advertiser get to be the first result they see.

(Also most people honestly don't know the difference between sponsored results and real search results)

Re: Verizon Explores Lower Price or Even Exit from Yahoo Deal

#83

Verizon 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.

I fail to see how it's an awesome deal.

Verizon right now is only bidding for Yahoo's core business, not its Alibaba and Yahoo Japan shares. From what I remember, without those two assets, its core business is valued at less than zero.

Why would you pay 4 billion for a company that's bleeding cash, open to huge liabilities for password breaches/backdoors, ever-shrinking user numbers, and no technology worth speaking of?

Re: Verizon Explores Lower Price or Even Exit from Yahoo Deal

#84
post #32
post #25

Earlier quoted context omitted.

Why not migrate them to WordPress.com (the platform) then?

Does WordPress have reblogging? A feed that will show you all the posts from people you follow? From what I've seen (and I'll admit to not being overly familiar with either), WordPress and Tumblr are very different beasts with every different aims.

> Does WordPress have reblogging? A feed that will show you all the posts from people you follow?

To answer your questions: yes and yes: https://en.blog.wordpress.com/2012/01/20/read-blogs/ (Not that I use it, but this functionality was implemented back in 2012).

Re: Verizon Explores Lower Price or Even Exit from Yahoo Deal

#85

Is this related to the most recent hack? IE, are they valuing Yahoo as less now that there's more bad press?

From what I understand there's a clause in the deal that allows Verizon to walk away if Yahoo was hiding something "material" from them.

http://www.wsj.com/articles/material-adverse-change-clause-i...

Re: Verizon Explores Lower Price or Even Exit from Yahoo Deal

#86
post #57

One benefit of these incidents at Yahoo! is that they represent salient, clear examples of the cost of poor information security. CIOs and security directors will be able to point to this deal as evidence that poor security can have material impact on the business and destroy massive shareholder value, even years after the fact. A 6.5% intra-day dip sends a clear message. Even a CFO can now see that information secur…

The yahoo dip is even larger, considering yahoo's stock is primarily Alibaba. If it were split into two companies the dip would likely be >20%.

Re: Verizon Explores Lower Price or Even Exit from Yahoo Deal

#87
post #47

Earlier quoted context omitted.

And that's a fair, justified opinion to have. But attacking someone who holds a contrary opinion for having ulterior motives is an extremely uncharitable thing to do.

It wasn't an attack and my summation was correct as he has friends that work there.

Maybe you'd have more friends if you could recognize that you're impugning someone's integrity by claiming they could only hold an opinion if they had ulterior motives that they aren't being forthcoming about.

Many (most?) people would call that an attack.

Re: Verizon Explores Lower Price or Even Exit from Yahoo Deal

#88

Yahoo 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…

Am I missing something, or is it 1/8 of Google's search traffic, according to your numbers, not 1%?

Grandparent was using "for" as in "per". The 1% is irrelevant. It could be any unit of search.

"That's a 17-fold difference in the price per 1% share" "That's a 17-fold difference in the price per 8% share" "That's a 17-fold difference in the price per search"

Re: Verizon Explores Lower Price or Even Exit from Yahoo Deal

#89

Earlier quoted context omitted.

It's crazy i am seeing this on HN. I feel Yahoo is all worth for the following reasons: 1) 2 decades old brand name everyone aware of 2) Yahoo! has some good products which is used by tons of people like Flickr, Finance, search(12% market share [0]), weather, media. They just don't have a mammoth money making one product which subsidizes the rest of the business like Google. Not to mention the tech talent and the cul…

Market share is irrelevant if you have to run at a loss to obtain it. I can steal all of Netflix and Hulu's market share if you give me a few billion quarterly and don't require that I'm ever profitable, care to invest in me? I'll have an excellent brand as well, everyone loves free TV. The price is pretty low now, if you are confidant in your assement why not buy?

The profitability of Yahoo isn't everything. Verizon can just buy it as a loss leader in order to convert more users to their profitable products. The value of Yahoo to them is more than numbers on a spreadsheet. It isn't as simple as just buying a revenue stream.

Re: Verizon Explores Lower Price or Even Exit from Yahoo Deal

#90

Yahoo 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…

Am I missing something, or is it 1/8 of Google's search traffic, according to your numbers, not 1%?

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