Titel : Verizon splashes $4.83b to acquire Yahoo's core assets
Link : Verizon splashes $4.83b to acquire Yahoo's core assets
Verizon splashes $4.83b to acquire Yahoo's core assets
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Yahoo, once an everyday name, has faded into relative obscurity in recent years as it failed to keep up with companies such as Google and Facebook. Some of its products remain widely-used – such as Flickr and Tumblr – but many users won't even be aware they're using a Yahoo product.
The eventual acquisition of Yahoo was seen as inevitable and today it has come to pass after the company's board agreed on Sunday to sell its core operations to Verizon for $4.8 billion.
Marissa Mayer, CEO of Yahoo, said: "Yahoo is a company that has changed the world, and will continue to do so through this combination with Verizon and AOL. The sale of our operating business, which effectively separates our Asian asset equity stakes, is an important step in our plan to unlock shareholder value for Yahoo. This transaction also sets up a great opportunity for Yahoo to build further distribution and accelerate our work in mobile, video, native advertising and social."
After the sale, Yahoo will still maintain around $41 billion worth of investments in Alibaba, Yahoo Japan, and several modest patents. At its height, Yahoo once had a value upwards of $125 billion as one of the largest internet companies in the world prior to companies such as Google and Facebook stealing much of its value.
"Yahoo and AOL popularised the Internet, email, search and real-time media. It's poetic to be joining forces with AOL and Verizon as we enter our next chapter focused on achieving scale on mobile. We have a terrific, loyal, experienced and quality team, and I couldn't be prouder of our achievements to date, including building our new lines of business to $1.6 billion in GAAP revenue in 2015. I'm excited to extend our momentum through this transaction," Mayer added.
Mayer, once a Google executive herself, took over as Yahoo's president and CEO in July 2012 and was expected by the industry to help the company become more like the company she left. Today's sale to Verizon follows a string of strategic failures. One ex-Yahoo senior manager found the company’s travails difficult to witness. “I don’t feel vindicated,” the exec says. “I just feel sad to watch something that had so much potential in a death spiral.”
Verizon sees the value and potential in Yahoo's assets to expand its digital advertising and media business after the purchase of AOL last year for $4.4 billion. The Verizon-operated AOL internet business will have access to important Yahoo advertising technologies such as BrightRoll and Flurry, as well as search, mail, and instant messaging tools.
Lowell McAdam, Verizon Chairman and CEO, said: "Just over a year ago we acquired AOL to enhance our strategy of providing a cross-screen connection for consumers, creators and advertisers. The acquisition of Yahoo will put Verizon in a highly competitive position as a top global mobile media company, and help accelerate our revenue stream in digital advertising."
Yahoo will be integrated with AOL under Marni Walden, EVP and President of the Product Innovation and New Businesses organisation at Verizon. The deal is subject to customary closing conditions, approval by Yahoo's shareholders, and regulatory approvals, and is expected to close in Q1 of 2017. Until the closing, Yahoo will continue to operate independently, offering and improving its own products and services for users, advertisers, developers and partners.
What are your thoughts about Verizon's acquisition of Yahoo? Let us know in the comments.
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