Verizon Communication, Inc. Interested In Yahoo!, Inc. If The Board Decides In Its Favor

Verizon Communication, Inc. Interested In Yahoo!, Inc. If The Board Decides In Its Favor

If the board of Yahoo!, Inc. agrees or decides on selling the company then the chief executive officer of Verizon is very interested to take on the offer.

At a conference held on Tuesday, the chief executive officer of Verizon Communications Inc., Lowell McAdam stated that the telecommunication corporation would want to buy Yahoo! Inc. if the offer appeals to the board of the search engine corporation consider selling the company.

Presently the telecommunication corporation’s focus is on its connectivity in terms of television as well as the Internet to bring new users to its platform and also new platforms for its customers with various related topics. Mr. McAdam believes that the search engine’s advertising technology could be specifically beneficial for the telecom corporation, at this point. Since the telecom company heavily focuses on online video boosting currently, this new addition to the company can increase its growth.

Recently the American telecom corporation launched its novel video service by the name of Go90 which is specifically aimed at the millennials and another service by Yahoo!, Inc. which is a startup called BrightRoll has been launched. BrightRoll is a video ad technology platform which seems to attract the telecom company.

According to a recent interview that the executive vice president of Verizon gave, Marni Walden stated that the company is looking for things that would add to its content and furthermore to its multimedia offerings. The company stated that it is done only being the distributor for other companies and now wants to focus on its original content and provide the premium offerings to its customers. It believes that adding Yahoo to the family will only enhance its ability and furthermore contribute to its diverse content platform.

Other than that, the company is working on testing sponsored data. In the same interview with Re/Code, the executive vice president announced that the company is currently working on this service and is testing this service with a few partners but will eventually open up the field to anyone who wishes to join once they have made it broader. Further such carriers who have also worked on such strategies include AT&T and T-Mobile. The former telecommunication corporation has been working on this for a number of years now but has not managed to move past the trial stage.

On the other hand, T-Mobile does provide free songs and videos to its customers. This distribution of content does not add anything to the company’s market cap and the company doesn’t take money from its suppliers either of the specific content.

Yahoo!, Inc. board has had a number of board meetings recently to decide on specific strategies for the company. A few options that the board members pondered over were selling its internet business and also the place where most of the company’s market cap resides with the stake in Alibaba. But by the end of the session, the board members came to the consensus that getting rid of Alibaba stake is not the route that the company wants to opt for.

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What Do Analysts Think of Verizon Stock?

What Do Analysts Think of Verizon Stock?

The wireless company is expected to report an EPS of $1.02 in the upcoming quarter report

Verizon Communications is being looked at by the analysts with a much closer look than before, and the shares of the company are showing strength to touch a value which is somewhere between $45 and $57, in the upcoming period of 12 months. These expectations have been released by the Street analysts and the highest price target for the wireless company to reach in a year is reported as $51.76. This figure has been obtained from the consensus rating of all the equity firms in the market which have been covering Verizon stock of the telecommunication company.

Verizon wireless giant is also expected to hit earnings per share for the current quarter at $1.02, which shows that the company has managed to make the analysts quite positive about its stock for the near future. Furthermore, the giant has scheduled for its earnings to take place on October 20. Since the wireless giant announced earnings for the last fiscal quarter to come around $1.04 per share, the expectations for the next quarter at $1.02 show that the communication company might not be reporting such a great quarter after all. Depending on the ratings of analysts at Zacks, the rankings which are received by every company are based on all the different ratings it receives from different financial firms, and the consensus value is taken out after close analyzing the difference of opinions and predictions.

Analysts at Zacks provide every company ratings on a scale of 1 to 5, which reportedly has made it easier for not only the investors to know the proper time to make their investments or to withdraw them, but also gives other analysts an idea about where the company could be headed. Verizon business has attained a 1.96 rating score from the same analysts, which means that they are thinking more about giving it a ‘buy’ ranking instead of a ‘sell’ one, which shows their bullish sentiments towards the giant. The rating has been derived from different rankings provided to the wireless business from analysts all over the market.

For a full term earnings report, the company is expected to report an EPS of $3.98. However, this is just an average of all the estimations received by all the firms in the industry, as one of the analyst firm thinks that the giant is capable of reporting an EPS of $4.13 for the 12 month period, whereas the lowest estimations are seen to be touching $3.76 by another firm.