Verizon shares retreat a third straight session on Wednesday, company moving closer to Yahoo acquisition

According to a person with knowledge of the matter, Verizon Communications Inc (VZ) is moving closer to a new deal to acquire Yahoos core Internet business. The new agreement is said to envisage a $250 million to $350 million lower price compared to what has been agreed on initially ($4.83 billion).

Verizon shares closed lower for a third straight session on Wednesday, but yet, the daily drop has been the smallest since February 2nd. The stock edged down 0.39% ($0.19) to $48.08, after touching an intraday low of $47.80, or a level not seen since February 7th ($47.80). In the week ended on February 12th the shares of the communication service provider added 0.82% to their market value compared to a week ago, which marked the first gain in the past three weeks and also the best performance since the week ended on December 25th. However, the stock has extended its slump to 1.90% so far during the current month, following an 8.19% retreat in January. The latter has been the worst monthly performance since May 2013. For the entire 2016, the shares of the NYSE-listed company gained 15.49%.

Another source with knowledge of the situation claimed that the discount would probably be around $250 million.

“Maybe this isnt quite as much of a discount as initially thought, but its at least something”, Dave Heger, senior equity analyst at Edward Jones, said, cited by Reuters.

A spokesperson for Verizon refused to comment on the matter.

The communication service provider expects to unite Yahoos advertising technology tools and search, email and messenger assets with its AOL unit, acquired at a cost of $4.4 billion in 2015.

A potential deal, which could become a fact during the present week, will entail both companies to share the liability from eventual lawsuits concerning Decembers data breach.

Notifications have been sent by Yahoo on February 15th to a list of users, whose accounts may have been accessed without their awareness between 2015 and 2016.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Verizon stock are presented as follows:

R1 – $48.11
R2 – $48.14
R3 (Range Resistance – Sell) – $48.16
R4 (Long Breakout) – $48.25
R5 (Breakout Target 1) – $48.34
R6 (Breakout Target 2) – $48.38

S1 – $48.05
S2 – $48.03
S3 (Range Support – Buy) – $48.00
S4 (Short Breakout) – $47.92
S5 (Breakout Target 1) – $47.82
S6 (Breakout Target 2) – $47.78

By using the traditional method of calculation, the weekly levels of importance for Verizon Communications Inc (VZ) are presented as follows:

Central Pivot Point – $48.63
R1 – $49.47
R2 – $49.95
R3 – $50.79
R4 – $51.62

S1 – $48.15
S2 – $47.31
S3 – $46.83
S4 – $46.34