Saturday, June 4, 2016

Twitter, Yahoo Explore Merger Possibility: Report


Screen Shot 2016-06-03 at 10.38.03 AM
Struggling microblogging network Twitter is reportedly investigating the merit of a merger with Yahoo, according to the New York Post.

At least it was. Sources told the publication Twitter executives met with Yahoo CEO Marissa Mayer and her management team to look over the Internet giant’s financials to see if a merger might make sense.

Jack Dorsey
Jack Dorsey
Marissa Mayer
Marissa Mayer

Twitter CEO Jack Dorsey, however, did not attend the meeting, leading to speculation that the social networking firm is not serious about such a partnership.

“When your CEO doesn’t show up for a management meeting, you have to wonder how serious it was,” one source told the Post, adding that Twitter’s interest wasn’t driven by “some huge thesis — it was a flyer.”
Still, the idea is not as crazy as it sounds. Another source explained that it could indeed be beneficial if the financing was there.

“Twitter is the destination for instant news, and Yahoo has a lot of eyeballs on its site,” the source said. “The idea isn’t as crazy as you might think.”

Yahoo officials declined to comment other than the usual response: “We don’t comment on rumor and speculation.”

Mayer, in an April conference call with investors, said she and her management team have made the sale a “top priority” and added that there has been a “high level of interest” from first-round bidders, who are “some of the most well-known and respected names in the industry.”

Verizon is thought to be the front-runner for Yahoo, but other large companies thought to be in the running include Microsoft, IAC, CBS, The Daily Mail and Time, to name a few.

Mayer, at the beginning of February, announced her new plan for the company, which included the spin off of Yahoo’s core Web business — including the Yahoo and Tumblr websites. As part of the move, Yahoo’s Internet unit becomes a separate, publicly traded company.

Custpm Luggage Tags