Verizon CEO Confirms Interest in Buying Yahoo

Lowell McAdam, Verizon CEO, speaking on Dec. 8, 2015.
Provided by Justin Solomon/CNBC

Verizon Communications chairman and CEO Lowell McAdam spoke with Jim Cramer of CNBC’s “Mad Money” on Friday, and confirmed the company is considering a bid for Yahoo.

McAdam previously announced the company’s strategy as being broken into three tiers: having great connectivity, owning platforms to drive traffic to its network, and owning content that supports its ecosystem.

This week, Yahoo’s earnings report confirmed the company’s dour prospects, and renewed questions about CEO Marissa Mayer’s strategy. The company is shrinking headcount and cutting expenses, and also said it was mulling strategic alternatives—corporate code for selling assets or cutting a merger deal.

When Cramer asked if Verizon would consider adding Yahoo to its three-tier strategy, McAdams responded “We have to understand the trends. But then at the right price, I think marrying up some of their assets with AOL and the leadership would be good.”

In May 2015, Verizon entered an agreement to buy AOL for $4.4 billion. McAdam said since the purchase, Verizon’s approach has been to keep AOL separate from the core company.

“We put this in an incubator almost and we have been feeding the information from our money subscribers into the AOL engine,” McAdam said.

So while the CEO is not ready to declare victory yet, he stated that adding additional media pieces into AOL might make sense and allow Verizon to turn it into something special.

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