Verizon (VZ - Get Report) and Yahoo! (YHOO . Microsoft (MSFT - Get Report) and LinkedIn (LNKD . Ziff Davis and (likely) Gawker. What can investors take away from this year's highest profile technology deals? 'Everyone wants sticky users to maintain valuations,' said Greg Portell, partner at A.T. Kearney. 'They also want to shift to a younger profile because the younger audience base has been elusive, especially for legacy media companies.' When it comes to Verizon's $4.8 billion purchase of Yahoo! last month, Portell said the deal is noteworthy because it signals the death of 'legacy-digital royalty'. The acquisition was the culmination of an auction process that began in February, after CEO Marissa Mayer failed to convince shareholders she could turn the company around. Yahoo! will join Verizon's AOL unit, another notable name from the original dot-com boom. 'Yahoo's situation highlights the difficulty for digital companies when held to traditional financial performance expectations,' said Portell. 'Verizon's interest reinforces the value of a billion-digital unique.' Portell maintained it was a smart move for Verizon because Yahoo!'s traffic is both sticky and heavily mobile. Verizon also knows how to transition digital properties, in his view, so the integration should go smoothly.
TheStreet’s Fundamentals of Investing Course will teach you the keys to making the right decisions in any market.
TheStreet’s Personal Finance Essentials Course will teach you money management basics and investing strategies to help you avoid major financial pitfalls.
TheStreet Courses offers dedicated classes designed to improve your investing skills, stock market knowledge and money management capabilities.
More from Video
Watch: Jim Cramer Analyzes CAT, CVX, DIS, DWDP, GS, HD, IBM and MCD In Real Time
Have you ever seen someone analyze the 'tape' in real time? See Jim Cramer give his real time stock analysis on companies like Goldman Sachs, Dow Dupont, Caterpillar and more.
Cramer on Comcast, 3M, and Southwest Airlines Earnings Report
Watch the video for Jim Cramer's take on CMCSA, MMM, LUV earnings in under 60 seconds.
Why Tesla's Latest Earnings Report Has Jim Cramer Calling Elon Musk P.T. Barnum
Here's why Elon Musk's latest Tesla earnings call has Jim Cramer thinking about P.T. Barnum.
Cramer: Why Facebook's Potential $3B to 5B FTC Fine Is Like a Library Fee
Another day, another Facebook headline. Jim Cramer says he isn't too worried about Facebook's potential FTC fine after the social media giant reported strong than expected earnings