More Squawk From Jim Cramer: Yahoo (YHOO), Verizon Deal ‘Great Merger of Content, Distribution’

Verizon’s (VZ) deal to buy Yahoo's (YHOO) core assets is 'very exciting,' according to TheStreet's Jim Cramer.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Yahoo (YHOO) are dropping 2.08% to $38.56 late Monday morning after the company agreed to sell its core Internet assets to Verizon Communications (VZ) for $4.8 billion.

"I think this is very exciting," TheStreet's Jim Cramer said of the deal on CNBC's "Squawk on the Street" this morning.

The Internet giant used to be a great growth company, but it has been "shrinking forever," Cramer added.

"Yahoo was a wasting asset. It was truly something that lost its way," Cramer said.

Cramer said that Yahoo's shareholders are "lucky" and have been "along for the ride" for a while at a company that has offered no growth whatsoever.

"I think they did great," Cramer said referring to the price of the deal.

Cramer mentioned that Yahoo could become a great growth company again with capital and leadership.

He also noted that this is a great merger of content and distribution.

"I think you're going to see some great things from these guys. It will not go away quietly. It will advance," Cramer said of the deal.

Additionally, Yahoo helps Verizon keep more customers as it faces increasing competition from other wireless carriers such as AT&T (T), T-Mobile (TMUS) and Sprint (S), Cramer said in the above video.

Shares of Verizon are declining 0.21% to $55.98 on Monday morning.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C- on Yahoo! stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations.

But the team also finds weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: YHOO

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