Sinha said acquiring Yahoo is a much easier task for traditional media companies like Microsoft, News Corp. (if it weren’t fighting its own battles), Viacom, and Comcast that might want to boost their online presence.
Herman Leung, an analyst for Susquehanna International Group, said Yahoo could be equally appealing to private equity or strategic buyers.
“I think potential acquisition opportunities could come from multiple fronts,” he said. “Considering how cheap the cost of debt seems to be these days, one is private equity. The other is more traditional companies looking to stay relevant in online media and get a property here for very cheap and at the same time unload potentially the international assets.”
While other analysts said the size of Yahoo’s market cap could be an impediment for private equity, Leung said he didn’t see it as a hurdle because it was mostly based on the international assets, which are valuable and could likely be sold quickly.
“[An acquisition] probably could happen within a year, or maybe two years,” he said. “I would give it a longer lead time.”
Other analysts say that with the value of Yahoo’s Asian assets and the level of dissatisfaction with management’s responsiveness, there’s increased likelihood that potential buyers (whether they’re private equity or other companies) will try to stir the pot while the stock price is depressed.
Kena Sena, an analyst with Evercore Partners, said that given what’s happening in the larger marketplace “the entire market is priced rather attractively. However, within the space, these two stand out.”
A story built on the rumor published in a previous story.
I guess repeating rumors as if they are fact is a lot easier than actually doing any investigative reporting.
A good journalist might dig into why Yhoo can't sell its stake in Alibaba Group unless Jack Ma approves the sale. (Contrary to popular belief Ma has final say on what Yhoo can do with its stake.)
But, that would require work and we all know journalists are lazy people. Especially on Fridays when they need to put something out before they can hit the bars for a few pops before heading home.
Just write up something and refer to another stories speculation.
“Within the next year, something is going to happen with these companies. It needs to. Yahoo has been disappointing since spring 2008. . . . AOL has been disappointing since 2010,” said Sameet Sinha, an analyst with B. Riley and Co. “It’s very clear someone is going to step in and buy these guys or some sort of financial engineering will happen.”