4 ms·

Verizon would be stupid not to walk away from the deal at this point. Setting aside that $4 billion was clearly way too much, Verizon, as the parent company, w

Verizon would be stupid not to walk away from the deal at this point. Setting aside that $4 billion was clearly way too much, Verizon, as the parent company, would be liable for any lawsuits against Yahoo resulting from the last few leaks.

vthallam 10y ago
I'm pretty sure that the latest round of negotiations would cover the part 'what if someone sues, who pays for it?". Also, Verizon got an awesome deal to buy Yahoo for $4 billion and there's no way they will walk away from it in their right mind.
- jimmywanger 10y ago
  I fail to see how it's an awesome deal. Verizon right now is only bidding for Yahoo's core business, not its Alibaba and Yahoo Japan shares. From what I remember, without those two assets, its core business is valued at less than zero. Why would you pay 4 billion for a company that's bleeding cash, open to huge liabilities for password breaches/backdoors, ever-shrinking user numbers, and no technology worth speaking of?
  - jsjohnst 10y ago
    > and no technology worth speaking of? Seriously!? You really need to educate yourself if you believe that.
chinhodado 10y ago
It's funny that $4b is deemed "way too much" for Yahoo when Snapchat is valued at $20b something, and Linkedin was bought for $26b. And Instagram and Whatsapp and all the other unicorns.
- bduerst 10y ago
  Were Instagram and Whatsapp unicorns? FB put down billion dollar purchases for them, but they weren't the inflated-valuation investor rodeos we see with unicorns.
- TuringNYC 10y ago
  It seems you are just randomly comparing tech companies by bid/sale value...what about actual value? There is incredible value to LinkedIn, and the 7x multiple is entirely sensible. They have the world's largest resume database, active users, major network effects, and near zero competition. Yahoo has nothing close to that. I'm not saying that drives a 4B$ valuation exactly, but comparing Yahoo to LinkedIn is apples to oranges.

vthallam 10y ago

I'm pretty sure that the latest round of negotiations would cover the part 'what if someone sues, who pays for it?". Also, Verizon got an awesome deal to buy Yahoo for $4 billion and there's no way they will walk away from it in their right mind.

jimmywanger 10y ago
I fail to see how it's an awesome deal. Verizon right now is only bidding for Yahoo's core business, not its Alibaba and Yahoo Japan shares. From what I remember, without those two assets, its core business is valued at less than zero. Why would you pay 4 billion for a company that's bleeding cash, open to huge liabilities for password breaches/backdoors, ever-shrinking user numbers, and no technology worth speaking of?
- jsjohnst 10y ago
  > and no technology worth speaking of? Seriously!? You really need to educate yourself if you believe that.

chinhodado 10y ago

It's funny that $4b is deemed "way too much" for Yahoo when Snapchat is valued at $20b something, and Linkedin was bought for $26b. And Instagram and Whatsapp and all the other unicorns.

bduerst 10y ago
Were Instagram and Whatsapp unicorns? FB put down billion dollar purchases for them, but they weren't the inflated-valuation investor rodeos we see with unicorns.
TuringNYC 10y ago
It seems you are just randomly comparing tech companies by bid/sale value...what about actual value? There is incredible value to LinkedIn, and the 7x multiple is entirely sensible. They have the world's largest resume database, active users, major network effects, and near zero competition. Yahoo has nothing close to that. I'm not saying that drives a 4B$ valuation exactly, but comparing Yahoo to LinkedIn is apples to oranges.