Many of our readers in Louisiana may have seen some news reports regarding the deal between mega-companies Verizon and Yahoo, in which Verizon is to acquire Yahoo. Since the $4.8 billion dollar acquisition was announced in July of last year, it appears that the transition has gone rather smoothly. However, a report noted that certain flare-ups may jeopardize the deal.
The report noted that when news broke that millions of Yahoo accounts had been hacked, Verizon began to second guess the deal to acquire Yahoo. That would make sense: Yahoo, while facing many troubles, is still a brand name that is known worldwide. To see that name tarnished in the midst of an acquisition deal that is worth billions of dollars would certainly be a reason for the dealmakers to take pause. But, as of now is appears that the deal will move forward, although the recent report noted that Verizon has taken steps to slow down the acquisition process that was once thought to be on track to be completed early this year. It has also been announced that Yahoo will have a new name: Altaba.
Any merger or acquisition can be fraught with unexpected complications. These are complex business transactions that can often include hundreds of people working behind the scenes, as well as large amounts of money at stake.
Businesses in Louisiana that are considering whether or not to take part in a merger or acquisition will want to do their due diligence to ensure that the target company is a fit for the deal. Sometimes that due diligence process will reveal troubling issues that need to be addressed.
Source: easterndaily.com, “Yahoo Changes Names Amid Verizon Deal,” Rakim Reid, Jan. 10, 2017