Telecommunication companies often find themselves

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Telecommunication companies often find themselves seeking expansion in different areas and Verizon is no different. Much like AT&T tried with T-Mobile a few years back, and currently with Time Warner; acquisition is big business, $4.8 billion at that! Verizon had a decision to either expand and take on this acquisition or wait it out for another opportunity to come by and the time was now. Yahoo has taken 3rd place to other sites such as Facebook and Google, yet it is still amongst the top 3. Once the portal to the Internet, and a pillar of the technology industry, Yahoo has fallen in stature as other Web giants, chiefly Google and Facebook, have built sprawling business empires and amassed cultural cache extending well beyond southern California. Although no longer seen as the pioneering Internet company it once was, Yahoo's umbrella of websites, including Yahoo Finance and 4
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COMPANY XYZ Yahoo Sports, commands a staggering amount of online traffic. Yahoo's Internet properties had nearly 200 million unique visitors in April, according to the analytics firm ComScore. Only Facebook and Google claimed more. Experts said it's this massive audience that attracted Verizon to Yahoo (Shaban, 2017). Yahoo was a company that was once valued at $100 billion dollars now being sold for $4.8 billion; what happened? As a company it is important you stick to your core base but evolve and bring your company with you. If Yahoo wanted to be the leading search engine, email holding, tech site in the world then upping the ante definitely would have provided more growth opportunities. So, is stagnancy what killed Yahoo? Probably not, but not staying ahead of the competition could have. The completion of the acquisition marks the end of the line for Yahoo as a standalone Internet company, a storied tech pioneer once valued at more than $100 billion (R, 2017). The acquirer will spend a huge amount of due- diligence effort to identify the sources of value (Intellectual Property, People, Brand, etc) from the deal. It is essential for the acquirer to structure the deal and the resources to maximize these value drivers, and to financially model DCFs based on these value drivers (Quora, 2013). Verizon is the number one wireless company in the world, and in order for the acquisition to happen they found value in purchasing Yahoo for $4.8 billion dollars. Acquisitions and Mergers are not all glitz and glam; it is only for a certain time the name stays in the spotlight before the real work kicks in. During these times employees that once had jobs may be looking elsewhere and management often changes which means so does the way of doing business. This is not an easy transition and it takes companies quite some time before finding their groove incorporating the new changes. Verizon plans to lay off 2,100 people once it completes its acquisition of Yahoo ’s internet business on Tuesday.
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  • Fall '17
  • Yahoo!, Verizon Communications Inc.

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