Verizon Buys Yahoo for $4.8 Billion

Verizon Buys Yahoo for $4.8 Billion

On Monday Verizon Communications Inc. said that it would buy Yahoo Inc.’s core internet properties for $4.83 billion in cash ending the Yahoo Era once which was No. 1 in the past Yahoo was founded in year 1994.

Verizon will combine Yahoo's search, email and messenger assets as well as advertising technology tools with its AOL unit, which it bought last year for $4.4 billion.

Verizon, the No. 1 US wireless operator, has been looking to mobile video and advertising for new sources of revenue outside the oversaturated wireless market.

Yahoo currently has $7.7 billion in cash, in addition to the $4.8 billion it will receive at the close of the deal, which it plans to return to shareholders

Yahoo will continue as an independent company until the deal receives shareholder and regulatory approvals.

It is expected to close in early 2017. It plans to change its name and become a publicly traded investment company.

The sale does not include Yahoo’s cash, its shares in Alibaba, its shares in Yahoo Japan, Yahoo’s convertible notes, certain minority investments and Yahoo’s non-core patents.

Verizon expects that combination of Yahoo and AOL will give competition to Facebook.

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Tuesday, July 26, 2016

Tags – Yahoo Verizon Sell Price