Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
The Wall Street Journal reported that Verizon Communications Inc. (NYSE: VZ) has agreed to pay ~$5B for the core business of Yahoo! Inc. (NASDAQ: YHOO), along with some real estate. SunTrust Robinson Humphrey’s Robert S. Peck maintained a Neutral rating on Yahoo, with a price target of $42.
Verizon had been a frontrunner in the acquisition of Yahoo’s core business, since it would be able to extract the maximum synergies, analyst Robert Peck noted. He added that there is unlikely to be significant regulatory hurdles, and the transaction could close in the back half of 2016.
What Next?
Peck expects Yahoo to sell or distribute the Yahoo Japan shares, which could be more complicated than was earlier anticipated. There are speculations of SoftBank Group Corp (OTCMKTS: SFTBF) being interested in Yahoo Japan’s shares.
Related Link: Verizon To Acquire Yahoo's Operating Business For $4.8 Billion
The analyst pointed out, however, that SoftBank had recently acquired ARM Holdings plc (NASDAQ: ARMH) for ~$30B, which could cloud the purchase of Yahoo Japan. He added, “If SoftBank isn’t interested, we think Yahoo could possibly sell the shares to Japanese investors or distribute to current shareholders.”
Sell The News
Peck recommended investors to sell the news, citing the reasons as:
- The deal has been widely anticipated
- The liquidation process could be complex and prolonged
- The transaction discount for Alibaba Group Holding Ltd (NYSE: BABA) could be “greater than investors realize due to “hook" shares.”
Did you like this article? Could it have been improved? Please email feedback@benzinga.com with the story link to let us know!
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!