Yahoo share price holds as Verizon takeover looms
19 October 2016 |
Yahoo's value seems to be holding out despite the threat from Verizon's top legal counsel it would be seeking a discount.
Yahoo earnings increased in late trading following a third-quarter 2016 earnings report that saw better revenue than expected.
There are still major concerns from Verizon’s management on its proposed $4.8bn offer to acquire Yahoo’s web assets following the disclosure of a massive data breach in 2014 in which over 500 million email accounts were affected.
Total revenue for Q3 was $1.31B, a 6.5% jump year-over-year. Revenue was down from $1B last year to $857.7M this year. Mobile, video, native and social as well as search were areas which performed well.
The company canceled its usual post-earnings call with analysts, citing the pending Verizon deal. Yahoo CEO Marissa Mayer said in a statement, “In addition to our continued efforts to strengthen our business, we are busy preparing for integration with Verizon. We remain very confident, not only in the value of our business but also in the value Yahoo products bring to our users’ lives. To that end, we take deep responsibility in protecting our users and the security of their information. We’re working hard to retain their trust and are heartened by their continued loyalty as seen in our user engagement trends.”
Last week Verizon general counsel Craig Silliman said the hack could have a material impact on Yahoo’s value - Verizon was reported as wanting to slash $1bn from its $4.83B sale price.
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