Who Is Buying Yahoo! Inc. (NASDAQ:YHOO)?
Yahoo! Inc. (NASDAQ:YHOO), a company now defined more by struggles than success, is in the process of offloading some of its properties. A number of companies have been cited as potential buyers of Yahoo’s properties on sale. Nevertheless, it also appears Yahoo’s sell-side bankers are trying to create a perception that Yahoo is attracting competitive bids.
Verizon Communications Inc. (NYSE:VZ), SoftBank and more recently Alphabet Inc (NASDAQ:GOOG) have been cited in connection with Yahoo buyout. But the last two don’t seem like likely buyers of Yahoo! Inc. (NASDAQ:YHOO) and they could be the names being floated to create the impression that Yahoo’s assets on the block are drawing wide buyer appeal.
SoftBank has enough headache of its own
Speculations about SoftBank buying Yahoo aren’t completely off because the companies are related in some ways. They both have stakes in Alibaba Group Holding Ltd (NYSE:BABA) and Yahoo Japan. But building Sprint Corp (NYSE:S) into a more successful phone carrier seems to rank high in SoftBank’s priorities than adding fresh headache by acquiring Yahoo.
Alphabet needs time to digest recent acquisitions
The mention of Alphabet in relationship to Yahoo buyout also doesn’t seem to make much sense. Buying Yahoo! Inc. (NASDAQ:YHOO) will add to Google’s dominance of the Internet search market, but the company is already struggling with antitrust issues in Europe and other places because of its dominance of search business. It seems logical that at this point Google would want to avoid any deal that could complicate its antitrust pains, which is why buying Yahoo appears out of question.
Additionally, Alphabet has tended to focus its attention in the so-called moonshot projects and Yahoo doesn’t appear to have anything to offer on that front. Moreover, Alphabet has tended to be taking more disciplined approach in M&A deals. With that, Yahoo must be bringing meaningful value to the organization to warrant attention.
Verizon seems likely buyer
After Verizon acquired AOL and proceeded to launch a mobile video service called Go90, it is been cited that various Yahoo! Inc. (NASDAQ:YHOO) assets fit in Verizon’s transformation agenda.
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