Yahoo! Inc. (NASDAQ:YHOO) was caught off-guard as TRC Capital Corporation placed a bid to purchase nearly 3 million shares of the search engine company at $37.45 per share. Not only was the bid unexpected but it was lower by 4.56% than the closing price of July 22. The stock fell by 2.61% to close at $37.83. TRC Capital Corporation’s bid is for nearly 0.32% of the outstanding shares.
Mini-tender offer unsolicited
Yahoo! Inc. (NASDAQ:YHOO) has recommended to its shareholders that they do not endorse the ‘mini-tender’ offer and ‘tender’ their shares.
TRC Capital unsolicited offer is not just to Yahoo, but several other public companies as well. The advantage with making mini-tender offers, is that, company’s can seek as much as 5% of the outstanding shares and get away with not making many of the disclosures which are otherwise required by the SEC.
Standard SEC guidelines caution against such mini-tenders. The regulatory body suggests that there are some bidders who propose mini-tender offers, at prices that are below the prevailing market prices. The bogey in the offer is that investors who are off-guard may not compare the offer price and market price and succumb to the offer.
Going by SEC guidelines and own strategic policies, Yahoo! Inc. (NASDAQ:YHOO) has recommended that shareholders do not tender their shares to such below-par prices. The company also recommends that those who have responded to such an offer by TRC Captil can be withdrawn before noon, August 21, 2015 New York City time.
Yahoo! Inc. (NASDAQ:YHOO) has been under stress by investors about its Chinese ecommerce giant Alibaba Holdings stake. Many investors recommend the selling-off of the stock and bringing value to the shareholders. Yahoo has been recommending to its shareholders not to accept the mini-tender offer and documenting the fact that Yahoo is not associated with TRC Capital.
Yahoo! Inc., incorporated on March 24, 1999, is a technology company. The Company is engaged in providing Internet search, communication and digital content. The Company manages its business geographically: the Americas; Europe, the Middle East and Africa (EMEA), and Asia Pacific. The Company’s products include Search, Communications, Digital content, Flickr, and Tumblr.
Search
Yahoo Search is a search engine serves as a starting point to navigate the Internet and discover information, which is ranked and organized -based on their relevance to the query. Yahoo offers its Search services on mobile phone, tablet or PC. Yahoo Answers enables users to seek, discover and share knowledge and opinions across mobile phones, tablets and PC. Yahoo Aviate is a launcher application built for Android phones that helps users organize their phone applications and access the information that is useful to them when they need it.
Communications
Yahoo Mail connects users to the people and things that are important to them across mobile phones, tablets and PC. In addition to mail, the Company offers users integrated contacts, calendar and messaging products, all outfitted with one terabyte of storage and photo themes. The Company’s mobile apps bring its users personalized news streams and updates from its other content verticals like Sports, Finance, and Weather. Yahoo Messenger is an instant messaging service that provides an interactive and personalized way for users to connect and communicate in real-time. Yahoo Groups allows users to join groups -based on shared interests and involvements, providing access to messages, event calendars, polls and other shared information.
Digital Content
Yahoo.com offers news and information, including Yahoo original content and partner content, curated by editors from across the Web. Visitors on the Yahoo Homepage can see a preview of their mail inbox, local weather, stock quotes, sports scores, comics and more. The Company’s Yahoo Properties generate revenue from display and search advertising, as well as from fee-based services. Many of its Yahoo Properties are also available in mobile-optimized versions for display on mobile phones and tablets and as native applications across different operating platforms for iOS and Android phones and tablets. Yahoo Sports serves audiences of digital sports. It is anchored by Fantasy Sports, editorial reporting, real-time scores, statistics and breaking news, coverage of the sports events and premium college sports coverage. Yahoo Sports includes Fantasy Sports, which includes mobile offerings, such as push notifications and a unified app for games; Mobile, a Yahoo Sports application expanding into six additional countries and incorporating video highlights, and Global events, which launched dedicated mobile and PC sites to cover the Winter Olympics in Sochi and the FIFA World Cup in Brazil, featuring original and partner content, fantasy games, and live scores.
Yahoo Finance provides financial data, information and tools that help users make informed financial decisions. Yahoo Finance features a content offering that is a mix of original editorial and syndicated news via relationships with several third-party providers and is available on mobile phones, tablets and PC. Yahoo Weather provides users with real-time weather conditions and information for their favorite cities and locations and is available internationally on mobile phones, tablets, and PC. Yahoo News, Entertainment and Lifestyles are a collection of digital magazines focused on emerging trends. Digital magazines available include Yahoo Tech, Yahoo Food, Yahoo Health, Yahoo Style, Yahoo Travel, Yahoo Beauty, Yahoo Movies, Yahoo Music, Yahoo Makers and Yahoo Parenting. Each magazine features content from editors, partners and select user generated content. Features include visually driven content streams, editorial content, social sharing capabilities, entertaining and inspiring brand content, and display across all devices. The digital magazines also include engaging native ads. In addition to digital magazines, the Yahoo News Digest app brings users twice-daily summaries of new stories and breaking events on iOS and Android phones. Yahoo Screen is a video destination site and application where users can easily flip through their favorite channels. Users are also alerted to featured live events and news.
Flickr
Flickr is a Web and mobile photo management and sharing service that makes it easy for users to upload, store, organize, and share their photos. Flickr offers all members one terabyte of free storage and the ability to purchase printed photo merchandise.
Tumblr
Tumblr offers a Web platform and mobile applications (particularly on the iOS and Android platforms) that allow users to create, share, and curate content of all kinds, including images, video, audio and text, and to consume media in the Tumblr Dashboard stream. Tumblr’s primary form of monetization is native brand advertising to users, primarily through a variety of ad products -based on Tumblr Sponsored Posts (company-sponsored blogs that are reblogged and shared across Tumblr users.) In addition, Tumblr generates revenue by enabling a marketplace for the sale of third-party developed blog themes and licensing its real-time feed of user-generated content.
Advertiser Offerings
Yahoo is a digital publisher and advertising technology provider that enables advertisers to reach their business objectives, from high-impact branding campaigns that generate awareness among consumers to tactical campaigns that drive specific audiences to action. It provides a unified approach to digital advertising across search, native, audience, display, and video advertising and across platforms and devices, including mobile and PC. The Yahoo Bing Network connects advertisers with an audience of millions of users, with the support of account teams, reporting, analytics and campaign controls. Yahoo also enables advertisers to engage their audience across devices and formats on Yahoo’s network of consumer products and exclusive publishing partners. Yahoo’s native advertising offerings include Yahoo Stream Ads and Tumblr Sponsored Posts. Yahoo Audience Ads allow advertisers to connect with their desired audience across display, video and mobile ads. Yahoo Premium Ads offers digital advertising opportunities on the Yahoo Homepage, Yahoo’s vertical content properties, Yahoo Mail, program sponsorships of major events and video placements. Yahoo Video provides brands with solutions for reaching their target audience at scale with digital video ads across both Yahoo and ad exchanges.
AD Platforms
Yahoo Gemini (formerly known as Yahoo Ad Manager) is a marketplace that gives advertisers access to Yahoo’s advertising products. Yahoo mobile search ads and native ads are available through Yahoo Gemini, with a user interface that helps advertisers get ads online, with insights and analytics built in. Yahoo Ad Manager Plus enables advertisers to plan, execute and optimize complex display ad campaigns directly. Yahoo offers managed services through Yahoo Ad Manager Plus for advertisers. APT is an internal ad management platform that handles the Company’s owned and operated inventory. BrightRoll offers a video demand side platform, ad network and publisher marketplace, enabling the buying and selling of video inventory across the digital advertising ecosystem. Flurry offers both sell and buy side platforms, focused in native advertising and mobile application publishers. Yahoo Ad Exchange is a platform that enables advertisers to reach audiences across Yahoo Properties, Affiliate sites and other publisher sites on mobile and the Web.
The Company competes with Google, Facebook, DoubleClick Ad Exchange, Microsoft and AOL.
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