Market Overview

Verizon 'Just Got One Step Closer' To Acquiring Yahoo's Assets

Verizon 'Just Got One Step Closer' To Acquiring Yahoo's Assets
Related VZ
Apple, Amazon, Tesla And The Changing Dynamics Of The Car Industry
Wells Fargo Downplays M&A Chatter On Charter
Large-Cap Stocks Gain on Monday (GuruFocus)
Related YHOO
A Deep Dive On The May IMX's Most Bought And Sold Stocks
IBM's Rethink On Remote Working — A Taste Of Things To Come?

The New York Post reported Wednesday evening that Verizon Communications Inc. (NYSE: VZ) is "one step closer" to acquiring Yahoo! Inc. (NASDAQ: YHOO)'s Internet properties.

The New York Post, citing its sources, noted that Yahoo's recent agreement with activist investor and major shareholder Starboard Value could "smooth the path" for a sale of the company's core assets to Verizon.

As part of the agreement, Yahoo appointed 4 of Starboard Value's slate of directors, including the fund's CEO and Chief Investment Officer Jeffrey Smith.

Related Link: Jim Cramer Suggests Yahoo No Longer In 'Disarray' After Reaching Agreement With Starboard

"Jeff has a lot of money wrapped up in Yahoo," one investor told the Post. "I don't think he would have settled [for four board members] if it wasn't going to go the way he wants it to go."

The New York Post added that its sources suggested Yahoo's revamped board of directors is more stable and could help potential bidders for the internet assets to be more comfortable.

"They won't be thinking they're going to be hassled by a new board. It's a potential issue off the table," the publication's sources also said.

Shares of Yahoo were trading higher by more than 0.70 percent Thursday morning.

Posted-In: Long Ideas News Rumors M&A Movers Tech Media Trading Ideas Best of Benzinga


Related Articles (YHOO + VZ)

View Comments and Join the Discussion!