Verizon Wins Deal For Yahoo’s Businesses
Verizon buys Yahoo in a big cash deal, edging out other competitors. Verizon Communications Inc. today announced it will buy Yahoo Inc.’s Web assets for $4.83 billion in cash.
The Silicon Valley web pioneer was put up for sale in February and garnered multiple bids from big time companies including AT&T; private equity firms TPG and Vector Capital Management; and Quicken Loans founder Dan Gilbert with financial support from Berkshire Hathaway CEO Warren Buffett.
According to Re/code, Yahoo informed the other bidders on Saturday that Verizon had won the process.
In a press release, Yahoo CEO Marissa Mayer said, “Yahoo is a company that has changed the world, and will continue to do so through this combination with Verizon and AOL.”
She added “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.”
Inclusion of the Price tag
The price tag includes “core” Yahoo, which includes search, email, advertising products, and the media business (including Yahoo Finance). The acquisition includes some real estate as well.
However, the acquisition doesn’t include Yahoo’s cash, its shares in Alibaba Group Holding Ltd., its shares in Yahoo Japan, and Yahoo’s noncore patents such as the Excalibur portfolio. MarketWatch reports, these assets will continue to be held by Yahoo, which will change its name at closing and become a registered, publicly traded investment company.
In addition, both companies said the deal is subject to customary closing conditions. This will include approval by Yahoo’s shareholders and it is expected to close in early 2017.
Verizon Becoming media-and-mobile-advertising Powerhouse
Verizon is determined to become a media-and-mobile-advertising powerhouse. Buying Yahoo is a smart move for Verizon.
Aside from acquiring Yahoo, Verizon gets assets like Tumblr, Flickr, Polyvore and digital ad tools Flurry and BrightRoll.
Verizon ranks the 5th most-visited web site in the US.