On Yahoo Verizon, the almighty Yahoo Inc. have been sold to The American Telecom Giant Verizon for $4.83B (approximately 5 billion), (£3.8bn) in cash after so many bidding from top Companies. The US internet firm Yahoo will now have to be combined with AOL, another faded internet star, which was also bought by Verizon last year (2015).
The business deal does not include Yahoo’s valuable stake in Chinese firm Alibaba for the Yahoo Verizon deal.
The price tag for the business deal is way too small to the $44bn that Microsoft offered for Yahoo in 2008 or the $125bn it was worth during the dot.com boom era.
According to Verizon, the deal for Yahoo’s core internet business, which already got more than a billion active users per month, would definitely make it a global mobile media company.
The CEO of Yahoo, Marissa Mayer, said: “Yahoo is a company that has changed the world, and will continue to do so through the combination with Verizon and AOL.”
In an email that was sent to staff, Ms Mayer, the Yahoo CEO said “planning to stay”, adding: “I love Yahoo, and I believe in all of you. It’s important to me to see Yahoo into its next chapter.”
On the other hand, AOL chief executive Officer, Tim Armstrong said the deal was about “unleashing Yahoo’s full potential”, and creating a big and major player in mobile media.
Marissa Mayer, who assumed the CEO position in 2012, has made little progress in returning the company to profit.
And just in last week before the company was sold, Yahoo was reported to have a $440m loss in the second quarter, but said the board had made “great progress on strategic alternatives”.
Verizon and Yahoo were reported on Friday to be in exclusive talks over a deal on selling the company to Verizon.