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Gabelli: Should Yahoo Sell Itself To Verizon?

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Mario Gabelli, Gabelli Funds chairman, would support a Verizon Communications Inc. (NYSE: VZ) acquisition of Yahoo! Inc. (NASDAQ: YHOO)'s core Internet media and search business, the value investor told on CNBC.

"They want to buy a spinoff from Time Warner (Time Warner Inc (NYSE: TWX)); it will fit in nicely with that. Nothing wrong with Verizon on betting that part," Gabelli told on CNBC's Half-Time Report.

Gabelli, who owns shares of Verizon and Yahoo, said Verizon could likely do a deal to sell off Yahoo Japan.

There are reports of more than 40 interested parties, including Verizon, and several analysts feel Verizon is a strong contender, as the merger makes sense following Verizon's $4.4 billion acquisition of AOL, Inc. (NYSE: AOL) last year.

Related Link: Is Yahoo Getting Close To The Finish Line?

Meanwhile, Yahoo has reportedly extended the deadline for outside bids for its core businesses to April 18, according to a report on Re/code.

Needham's Laura Martin told Benzinga that there are likely two potential reasons for the deadline extension: either more bidders have come to the table, or a potential deal may have a more complicated structure than anticipated.

Shares of Yahoo down roughly 0.5 percent at $36.01 with less than an hour of trading left on Friday. Verizon was up about 0.6 percent at $52.29.

 

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