Verizon (VZ) Wins Big in Yahoo Deal, Recon's Entner Tells CNBC

Verizon Communications (VZ) made a smart decision bidding to acquire Yahoo (YHOO) which has fallen 'from grace,' Recon Analytics Founder Roger Entner said on CNBC today.
By Lindsay Rittenhouse ,

NEW YORK (TheStreet) -- Verizon Communications (VZ) - Get Report $4.83 billion all cash bid to acquire Yahoo (YHOO) is a gain for the wireless network provider, Recon Analytics founder Roger Entner said on CNBC's "Squawk Box" Monday.

"Verizon got a really good deal. For Yahoo, it is the end of a decade-long fall from grace," Entner stated.

At one time, Yahoo was worth $125 billion and is now worth only $5 billion, he noted.

"What is amazing is how resilient the assets are. Even today after a decade of mismanagement, it's still the third largest web property and that's really what Verizon is buying here," Entner commented.

This merger "builds on the strength" of Verizon's $4.4 billion acquisition of AOL, which closed in June 2015, he continued.

Through its deals with Internet giants such as Yahoo and AOL, Verizon aims to rev up its digital and wireless capabilities.

Shares of Verizon are climbing in pre-market trading by 0.36% to $56.30 as shares of Yahoo are declining by 0.38 to $39.23 this morning.

Separately, TheStreet Ratings rated Verizon as a "buy" with a score of A.

The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, expanding profit margins, growth in earnings per share and increase in net income. TheStreet Ratings feels its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

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

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.

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