Yahoo! Inc. (NASDAQ:YHOO) has concluded the previously announced offering of $1.25 billion in convertible senior notes due in 2018, according to a regulatory filing. Yahoo said that the notes will be convertible into cash, shares of Yahoo’s common stock or a combination of cash and shares of common stock.
Proceeds to be used for business
The internet company is looking forward to utilizing the proceeds for various business-related purposes such as “acquisition or other strategic transactions, additional repurchases of common stock and working capital.”
Yahoo! Inc. (NASDAQ:YHOO) increased the offering from $1 billion, which it announced previously according to a report from the Wall Street Journal. Yahoo has included an option for early purchasers to buy an additional $187.5 million aggregate principal amount of notes, which are exercisable within a 30 days period.
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The initial purchasers will offer and sell the convertible notes only to qualified institutional buyers in pursuant to Rule 144A under the Securities Act of 1933.
Yahoo hiring Couric
In a bid to restructure the company, Katie Couric, anchor of the CBS Evening News will be hired, which indicates that chief executive Marissa Mayer is looking forward to ramp up the website performance as more viewers choose TV-style anchoring over the internet.
Couric, who will join the company as the Global Anchor, is another big name pulled in by Mayer to expand its subscriber base and speed up the turnaround process. Prior to Couric, Mayer appointed other big names such as gadget reviewer David Pogue, political reporter Matt Bai and Editor Megan Liberman, all from The New York Times.
Mayer took up the Yahoo! Inc. (NASDAQ:YHOO)’s CEO post in July 2012, and since then is trying to push Yahoo to a level of Google Inc (NASDAQ:GOOG) and Facebook Inc (NASDAQ:FB) in terms of advertising dollars. Shares of Yahoo have climbed more than 130% since she arrived and investors got more value through $5 billion stock buybacks.
“There’s no single thing they can do that will really flip the switch, and then revenues start appearing,” said Greg Sterling, an analyst at Opus Research in San Francisco. The analyst told Bloomberg that Mayer has done a good job in some of the basic moves that made possible for Yahoo to hire, to recruit.