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Verizon: Dump Bid For Yahoo


Verizon continues making progress with building new media assets while wasting time on a bid with old media Yahoo.

The latest earnings results from Yahoo show a business in secular decline that keeps getting worse.

Verizon's stock will continue trading weak due to the ongoing bid for Yahoo and the union strike.

The latest news has Verizon Communications (NYSE:VZ) as the likely top bidder for old media Yahoo (NASDAQ:YHOO) while buying a new media company. After the close Tuesday, Yahoo reported Q1 results that again question why Verizon wants to buy the core business of the company that's in big-time decline.

Source: Yahoo presentation

Verizon has traded weak since the signs emerged that the company was likely going to purchase Yahoo and the union went on strike. The latest Yahoo numbers suggest the market is right that the deal is bad for the communications giant. My previous research recommended staying away from the stock with the deal pending.

Investors need to only look at one short-term slide from the Yahoo earnings to understand why buying the company at almost any price is a bad move. One though only needs to view the lack of traction in the Mavens (mobile, video, native...