For Immediate Release
Chicago, IL – July 21, 2016 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Yahoo! Inc (NASDAQ:YHOO). (YHOO), Verizon Communications Inc (NYSE:VZ). (VZ), AT&T Inc (NYSE:T). (T), Alphabet (NASDAQ:GOOGL) Inc. (GOOGL) and Facebook Inc (NASDAQ:FB). ( FB).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Wednesday’s Analyst Blog:
Verizon, AT&T Submit 3rd-Round Bids for Yahoo
According to a report by Bloomberg, the struggling web-portal operator Yahoo! Inc. ( YHOO) received five bids for the final round of bidding for its core assets.
Notable among the bidders are U.S. telecom behemoths Verizon Communications Inc. (VZ) and AT&T Inc. (T) . The other three bidders are a consortium led by Quicken Loans Inc. founder Dan Gilbert and backed by Berkshire Hathaway Inc. (NYSE:BRKa) Chairman Warren Buffett, a partnership of Vector Capital Management and Sycamore Partners and private equity firm TPG Capital LP.
Citing an unnamed source, Bloomberg stated that out of the five, Verizon, Quicken Loans and Vector Capital Management are likely to be the top bidders. The deadline for submitting the final round of bids was this Monday. Yahoo is expected to declare the winning bidder next week after examining all three bids.
Internet-based information service provider giant Yahoo is currently struggling with its core businesses namely mail service, online sports, financial and general news sections and its vital online advertising technology, which includes the video advertising platform, BrightRoll.
In Feb 2016, Yahoo disclosed that it would consider "strategic alternatives" for its core businesses, including an outright sale or a spin-off. Notably, Yahoo boasts a significant user base that trails only Google of Alphabet Inc. (GOOGL ) and Facebook Inc. (FB) .
Yahoo was initially expecting to collect around $6 billion from the sale of its core Internet-based products. The company was also expecting to collect $0.5 billion to $1 billion from the sale of its non-core assets which consist of its 3,000 patents and real estate properties.
As per Bloomberg, Verizon’s second bid was in the range of $3.75 billion to $4 billion for the core assets of Yahoo while AT&T’s bid was around $5 billion which include both core and non-core assets. Both bid sizes were much less than what were initially anticipated by Yahoo. The reason may be the dwindling business of Yahoo. According to the research firm eMarketer Inc., this year Yahoo will control just 1.5% of the overall digital advertising market, down from 2.1% in 2015.
Bottom Line
Yahoo has not even been able to maintain its sales and profits, let alone grow. This is very disconcerting for a company that has been trying to turn itself around for many years now. Thus, any buyer putting high stakes on the bidding table will be great news for shareholders. On the other hand, Yahoo employees stand to benefit if either of the telecom giants vertically integrates Yahoo’s assets more profitably. Only time will unravel what is in the cards for this once leading Internet giant.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
YAHOO! INC (YHOO): Free Stock Analysis Report
VERIZON COMM (VZ): Free Stock Analysis Report
AT&T INC (T): Free Stock Analysis Report
ALPHABET INC-A (GOOGL): Free Stock Analysis Report
FACEBOOK INC-A (FB): Free Stock Analysis Report
Original post