Verizon Communication's CEO Shows Interest In Yahoo! Inc.

The telecommunication giant is planning on buying on the internet search engine giant as it would help it grow with the help of AOL.

Lowell McAdam, the chief executive officer and chairman of Verizon Communication has shown interest in buying the ever struggling Internet search engine giant Yahoo! Inc. The CEO talked about biding on the search engine company in talks with CNBC’s Jim Cramer from on “Mad Money”. It was about time a knight in shining armor rescued the failing business.

Lowell believes that if the telecommunication company decided to take over the struggling giant it was just to enhance its business operations. While showing interest to Jim Cramer at ‘Mad Money’ the CEO further stated this acquisition would be completely in line with the telecom corporation’s three tier strategy which includes ‘developing platforms to increase subscriptions’, ‘with the help of establishing greater connectivity expanding its business’ along with ‘owning content that facilitates the ecosystem’.

Previously, the wireless network corporation had acquired AOL at a price of $4.4 billion in a buyout in May 2015 and it believes that buying Yahoo! Inc. would prove to be quite beneficial for the business as its assets along with AOL could combine under a joint leadership. Previously, rumors of Verizon buying the search engine business has surfaced, which the telecom business completely denied but looking at the interest that Lowell showed in the company clearly justifies those rumors.

The telecom giant is indeed interested in buying Yahoo as it would help the company grow further in terms of mobile advertising and live video streaming on cellphones. The buying out news makes more senses as the search engine business recently posted lower than expected earnings results for the fourth quarter and almost zero growth under the supervision and leadership of the current chief executive officer, Marissa Mayor.

According to the earnings report for the fourth quarter, the internet giant reported a decline of 15% in the revenue generation which amounted to over $1 billion. The analysts at Wall Street had hoped that the company will report fairly acceptable figures for the quarter but it failed to do so and performed below the expectations which ultimately questioned the CEO’s plan on turning things around for the corporation. These declining numbers simply forced Marissa Mayor to cut the company’s workforce by as much as 15%.

At this point in time, this potential acquisition deal does not seem like a bad idea at all as it might work on in the favor of the both the companies. Even though Yahoo! Inc. has managed to underperform for a long time and has lost much of its credibility in the face of Google and Microsoft Corporation, it still remains in the household of over 200 million monthly active users.

 On the other hand, Verizon stock is being traded at a share price of $50.04 which indicates a decline of 1.82%. During the previous trading session, the highest level at which the stock price was seen at was $50.80 and the lowest at which the share price was seen at was $50.02. The 52-week high was reported to be $51.20 and the one year low was reported to be $38.06. Additionally, the earnings per share reported by Verizon was $4.37 with a price to earnings ratio of $11.45.

Verizon Communication Inc, Traded At A Share Price of $45.1

The telecommunication is being traded at a share price of $45.1 and has been showing promising results for the future.

A decline in the market capitalization of Verizon Communication, Inc. stock was witnessed on November 11, 2015. The shares dropped by 0.44% and they were being traded at a share price of $45.1.

Throughout the trading session the stock price of the shares kept fluctuating between $45.33 and $44.8, the former being the highest the share price of Verizon’s stock was seen hit and the latter being the lowest it was seen. The final traded was called at $45.1 per share with the shares of the telecommunication company soaring at 9,996,441 shares. Presently, the market cap of the telecommunication American company is $183,506 million while the outstanding shares of the company are 4,068,873,100 shares.

The one year high and low of Verizon Communication was seen at $51.73 and $38.06, respectively. In the previous five trading days, Verizon’s stock has dropped by 2.91% regardless they have shown and posted positive gain in a month’s time. In the past 4 weeks, the stock had increased by 1.81% hence the positivity. Contrary to that in the last three months, the company’s shares have again dropped by 4.52%. The stock’s performance in a year’s time has been 1,11%.

Insider trading was also seen and reported by the telecommunication company to the SEC. Verizon’s Executive Vice President and President of Production, Innovation and New Business unloaded 8,229 shares. These shares were being unloaded at an average share price of $46.25. The transaction was done on August 7, 2015 and was worth $380,674 and the information was revealed by Verizon to the SEC on a form 4 filing.

Insiders of the company own 0.11% of the company’s share while 62.59% of the shares were owned by Institutional Investors. As for the short interest, it has fallen by 16.6% making the shares count to 9,130,152 shares. Total floated share in the company are the remaining 1.1%. The earnings per share of Verizon are 2.51, these earnings are the portion of Verizon’s profit and the price to earnings ratio is at 18.04.The total float is currently at 4.07 billion shares. Through EPS a company’s profitability can be measured.

The week performance of Verizon’s stock is -2.91%, monthly performance is of 1.81% finally the year to date performance stands at -6.75%. Volatility being the statistical measure of the dispersion of the shares is at 1.32% having an average number of shares in the company to be 15202.97. As for the five year plan of the company, it has been predicted by the analysts of the company that there will be an EPS growth of 7.10%. Presently, the return on the company’s equity is 88.80% and 8.55 is the debt on equity.