Based on the information gathered by AtoZ Forex US team, the market is about to open on Monday for a Tech surprise as Verizon Yahoo acquisition is about to be announced. The Verizon Yahoo Acquisition news is expected to hit the market by Monday.
There has been multiple rumors in the past 6 months that Yahoo is negotiating with a number of possible deals, which included Warren Buffet’s Berkshire Hathaway, telecommunication giant Verizon, private equity firm TPG and a group led by Quicken Loans’ Dan Gilbert. Seems like rumors indeed had its base as Veriozon is about to announce the big news.
According to the sources the Verizon Yahoo acquisition deal is around $5 billion but the process can not be considered as a done deal yet as it needs to pass the regulatory hustle. Meanwhile, despite correlation between Verizon and Yahoo operations, there will be integration challenges.
Verizon Yahoo acquisition trade opportunities
The week ahead is likely to bring multiple trade opportunities in the US Stock Market as markets expect to hear about the earnings. While Yahoo earnings have been announced already, Verizon earnings are to be announced on Tuesday the 26th.
Moving on from the earnings report, the takeover is expected to shoot the Yahoo stock price higher. According to Friday market closing Yahoo stock price was at $39.38 level which has been serving as a psychological resistance level. Meanwhile, Verizon acquisition news Yahoo stock price impact is expected to be positive, thus the $40/stock level is likely to be broken and during the course of the week Yahoo Stock Price should be around $44 – $50 level.
Long Yahoo stocks from $40-42 level with targets towards $44 – 50 level.
Verizon stock price is at the moment at $56.10 level according to Friday market closing. Meanwhile, company stocks are doing well. If the earnings report comes positive, combined with the Yahoo takeover we could see Verizon Stock price to soar.
What about Marissa Mayer?
Based on the information as well as insider rumors Verizon does not want to see Yahoo CEO Marissa Mayer any longer as the company leader, but instead they want to bring AOL CEO Tim Armstrong as Yahoo’s new CEO.
Stay tuned, more information will follow on this topic.