Business IT & Web-tech News

Time Inc. Reportedly Playing A Hand At Merging With Yahoo

Share on Facebook
Tweet about this on TwitterShare on Google+Share on StumbleUponShare on LinkedInPin on PinterestShare on Reddit

Taking up an underdog position in trying to merge with the web giant Yahoo Inc., Time Inc. (via Bloomberg Business) comes face to face with behemoths like Verizon Communications and AT&T. The company is reportedly interested in pursuing an acquisition of Yahoo’s core business.

This news was reported by multiple people close to the matter who wish to remain anonymous. Though it might seem like a futile attempt seeing as much larger firms are competing for the same a merger deal with Yahoo, Time could just benefit from this approach as this would allow the smaller company to pursue a structure with Yahoo called a Reverse Morris Trust, a tax-free transaction in which one company merges with a spun-off subsidiary.

Reportedly, Time has interest only in the core business of the web giant. The Reverse Morris Trust is the key factor which is making the company take part in the bid, reports say.

Apparently, Yahoo CEO Marissa Mayer wouldn’t stay with the company under a Reverse Morris Trust. A deal with Time could prevent Yahoo from selling the company when its valuation reaches its trough. This could be very soon in the near future as the web giant’s shares have dropped by 29 percent in the past 12 months.

Marketers are selecting media partners that have either data-driven capabilities or premium content,

Ripp said.

We will be able to deliver both in a single platform and will stand apart from those that offer just one or the other.

[email protected]

Add Comment

Click here to post a comment

Your email address will not be published. Required fields are marked *