Seven West Media is considering a range of options for its joint venture Yahoo7 after Verizon Communications finally reached a deal to purchase the Yahoo internet business for $US4.83 billion.
For New York-based Verizon, the deal adds another layer to the digital media and advertising business it is trying to build. The deal is subject to customary closing conditions, including approval by Yahoo’s shareholders, and is expected to close in early 2017.
In a statement to the Australian Securities Exchange, Seven West said it had various options under the joint venture agreement once the change of control was close to being effected next year.
Seven West said it would have an opportunity, in the period between being formally notified of a transaction and final completion, to consider which options it selects, or a combination as may be negotiated with the new owners, that created the best value for its shareholders.
Until completion of any change of control at Yahoo, it would be business as usual at Yahoo7 in Australia and New Zealand, Seven West said.
“Seven West Media looks forward to discussing with Verizon Communications, the company’s future plans for Yahoo Inc in Australia and any impact these may have on Yahoo7 in Australia and New Zealand,” the statement said.
“Seven West Media has a number of positive options that will define its future development and success in digital media, building on its already highly successful development over the past few years.”
The company will update the market when it makes relevant decisions on this matter, it said.
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