Verizon boss eyes Yahoo purchase

Lowell McAdam, CEO of the expanding telco, has confirmed his company's interest in the digital property - "for the right price."
February 8, 2016

Just days after Yahoo execs admitted they were open to offers on the financially challenged company, Verizon has officially stepped in as a possible buyer.

Lowell McAdam, chair and CEO of the expanding telco, confirmed his company’s interest in the digital property in a recently televised interview with CNBC’s Mad Money host Jim Cramer.

“We have to understand the trends that we are seeing in some of their (Yahoo’s) results now, but, at the right price, I think marrying up some of their assets with AOL under Tim Armstrong’s leadership would be a good thing for investors,” he said.

Armstrong, of course, helped to captain the $4.4 billion sale of his former company, AOL, to Verizon last June. He remains with the brand as CEO.

In the recent TV interview, McAdam (pictured) said the addition of AOL to Verizon’s assets has contributed to the company’s growth in revenues, which were up $300 million in the fourth quarter from Q3 2015.

Specifically, McAdam singled out the boom in mobile video for adding to at least a portion of that success. Since the acquisition of AOL, Verizon has moved aggressively into the mobile streaming space, launching its own service, Go90, in the fall and funding an array of new, original series to lure subscribers.

Verizon declined to disclose Go90 subscriber numbers, but as of the end of January, research firm AppTopia has reported the mobile app has been downloaded 2.7 million times across both iOS and Android platforms.

McAdam was optimistic about the continued health of its mobile offerings through 2016.

“We’ve only had it (AOL) six months at this point so I don’t want to declare victory. We’ve got a long way to go,” he told Cramer. “But putting more pieces into it like…perhaps some things from Yahoo, might make sense. I think we can turn that into something special,” he said.

Yahoo’s long-rumored sale gained traction in early February after the company revealed in a year-end report that it had lost nearly $4.4 billion in 2015. Some tech watchers have attributed the loss to poor strategic decisions such as the reversal of its spin off in Alibaba and overestimating the value of its blogging site Tumblr.

In a statement, company execs confirmed that Yahoo will jettison a number of operations that it no longer considers valuable and focus on mobile, video, native and social content. The company also revealed it would reduce its global workforce by 15% this year, totalling approximately 1,600 jobs.

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