# Professor Baruch Lev weighs in on Yahoo's acquisition by Verizon

1 Faculty News July 25, 2016 ![Fortune logo](/sites/default/files/styles/246w/public/assets/images/con_031172.jpg?itok=61CxYB-R)>

Excerpt from [Fortune](http://fortune.com/2016/07/25/verizon-yahoo-overpaying/) -- "Verizon isn’t purchasing either the Alibaba or Yahoo Japan stakes, so it probably won’t be receiving those dividends. So if Yahoo is generating about $1.2 billion in annual free cash flow, the best assumption is that Verizon will get $142 million less, or $1.05 billion. 'That means Verizon is paying around five times free cash flow, based on the $4.8 billion price,' says [Baruch Lev](http://www.stern.nyu.edu/faculty/bio/baruch-lev), distinguished professor of accounting at New York University’s Stern School of Business. 'That isn’t a high number. But I’m also assuming that almost all the cash flows excluding the dividends are going to Verizon. If that’s not the case, the multiple could be excessive.'"

[Read more](http://fortune.com/2016/07/25/verizon-yahoo-overpaying/)