Verizon CEO Lowell McAdam has confirmed the company is considering a bid for Yahoo. His comments came just days after the technology giant’s chairman said it was exploring strategic alternatives to management’s turnaround plan.
Verizon (NYSE:VZ) CEO Lowell McAdam has confirmed the company is considering a bid for Yahoo (NASDAQ:YHOO). His comments came just days after the technology giant’s chairman said it was exploring strategic alternatives to management’s turnaround plan.
Asked in an interview with CNBC whether Verizon would consider adding Yahoo to its three-tier business strategy, McAdam (pictured) said “We have to understand the trends. But at the right price, I think marrying up some of their assets with AOL and the leadership would be good”.
Verizon last May paid US$4.4bn for AOL, which is now in charge of advertising sales for the telco’s mobile content service go90, launched last autumn.
The company’s three-tier strategy is centred around connectivity, platforms to drive traffic to the network, and content.
Last week, Yahoo CEO Marissa Mayer unveiled the company’s latest turnaround plan, aimed at simplifying its structure, narrowing its focus and increasing efficiency.
Maynard Webb, chairman of the Silicon Valley-based company, which reported a net loss of US$4.35bn for FY 2015, said that while the board supports the plan, it believes that looking at “strategic alternatives” in parallel is in the best interests of shareholders.
CFO Ken Goldman has been cited saying that “a number” of private equity firms have expressed interest in the core internet business, but none had yet made an offer. Bain and TPG are reportedly among those eyeing the asset. AT&T is reportedly also interested.
Verizon has been linked to the asset since last December, when CFO Fran Shammo said the company would look at it under the right circumstances.
Meanwhile, in late January, the Wall Street Journal reported that Verizon was in advanced talks with media company Hearst Corporation to set up an online video joint venture, which would develop two new digital media channels for go90.
Verizon is also rumoured to be interested in telco XO Communications, mainly for its wireless spectrum.
In early January, it was reported that Verizon had kicked off the sale of its data centres in a process worth more than US$2bn.
Verizon’s Q4 2015 results were generally in line with expectations. The company reported consolidated revenue of US$34.25bn, and an adjusted EBITDA of US$10.93bn. The wireless segment accounted for US$23.73bn of revenues, and wireline for US$9.47bn.
