Yahoo is sold for $4.8bn to telecom giant Verizon after the long financial struggle and a five-month auction. Earlier, Yahoo was the front door to the web for an early generation of internet users, and its services still attract a billion visitors a month.But the internet is an unforgiving place for yesterday’s great idea, and Yahoo has now reached the end of the line as an independent company.
Yahoo’s value lies in its users, more than any sites other than Google and Facebook. But over the last decade it has lost advertising revenue and search traffic to those same companies.Yahoo was once the king of the Internet, a $125 billion behemoth as big in its time as Facebook or Google are today. Now it’s being sold to Verizon for comparative chump change. That’s why, After a months-long bidding process and manylayoffs, Yahoo has finally sold to US telecoms giant Verizon (which owns AOL and TechCrunch). Verzion is now officially acquiring Yahoo’s core business for $4.83 billion in cash, which includes Yahoo’s advertising, content, search and mobile activities.The deal will leave Yahoo as a separate investment company that will change its name after the transaction.
YAHOO has agreed to sell its core business to telecom giant Verizon for $US4.8 billion ($6.4 billion), ending a 20-year run by the internet pioneer as an independent company, the firms announced. Marissa Mayer, CEO of Yahoo, said in a statement: “Yahoo is a company that has changed the world, and will continue to do so through this combination with Verizon and AOL.”
Verizon chief executive Lowell McAdam said Yahoo would be integrated into its recently acquired AOL unit to create “a top global mobile media company, and help accelerate our revenue stream in digital advertising.”
The acquisition, expected to close in early 2017, will exclude Yahoo’s cash, certain patent holdings, and its big share in China’s Alibaba Group and stake in Yahoo Japan.Yahoo Incorporation is parting with its email service and websites devoted to news, finance and sports in addition to its advertising tools under pressure from shareholders fed up with a steep downturn in the company’s revenue during the past eight years.