Verizon Communications may consider the possibility of acquiring Yahoo if a deal makes sense, according to Fran Shammo, the CFO of the telecommunications company.
During an industry conference in New York today, Shammo said Verizon could be interested “if Yahoo is right,” but he made it clear that it is too early to tell. According to him, “We look at everything across the spectrum, and if we see it makes a fit, and it works for our shareholders, and then we’ll take a look, but it’s was too premature.
Earlier this year, Verizon purchased AOL for $4.4 billion as part of its strategy to expand its business in mobile video advertising. Technology observers suggested that Yahoo’s online sports sites, financial, general news sites and advertising technology may be attractive to Verizon if the price is right.
“All I can say is we don’t know what Yahoo’s board will decide. It’s too early to know,” said Shammo during an interview after his presentation at the UBS Global Media and Communications Conference.
Verizon to continue its priorities next year
During the conference, Shammo said Verizon will continue its focus on investments and shareholder returns next year. He emphasized that the telecommunications company will concentrate on four areas including network and platform investments, spectrum, shareholder returns, and cleaning up its balance sheet.
“As we look into 2016, our priorities really don’t change. We do believe that the network is still the key ingredient to a very strong brand.”
“The majority of that wireless spend right now is on small cells to stay ahead of that demand that we see.You have to stay ahead of that demand, or you’re going to get congestion in your network,” he added.
Furthermore, Shammo emphasized that Verizon has the capacity to expand its network at a very efficient cost basis.
Yahoo Board is considering a sale or spinoff of its internet business
It was reported that the board of directors of Yahoo is considering a sale or a spin-off of the company’s core internet business. The tech giant’s Board is assessing how to maximize its 35% stake in Yahoo Japan and 15% stake in Alibaba Group Holding, worth around $8.5 billion and $32 billion, respectively.
SoftBank, the parent company of Sprint Corporation, was reportedly one of the potential bidders for Yahoo’s internet business. Technology observers suggested that acquiring Yahoo could position SoftBank as a global player in the internet industry.