Verizon to buy Yahoo for $4.8 Billion.
Verizon has made an official announcement on Monday that it will acquire Yahoo’s core business for $4.8 billion.
Verizon’s acquisition includes Yahoo’s operating business. Advertising technology and popular online content such as Yahoo Sports, Yahoo Finance, and Tumblr. It also includes the Yahoo brand and real estate including Yahoo’s Sunnyvale, Calif. headquarters.
“Just over a year ago we acquired AOL. To enhance our strategy of providing a cross-screen connection for consumers, creators, and advertisers,” said Verizon CEO Lowell McAdam in a statement announcing the deal.
“The acquisition of Yahoo will put Verizon in a highly competitive position as a top global mobile media company, and help speed up our revenue stream in digital advertising.”
Yahoo announced in February that it was looking at ‘strategic alternatives’ for its core internet business. Over the last few years, Yahoo has struggled to keep up with the changing internet advertising landscape. Some analysts arguing that it has failed to remain relevant in many of its core markets.
While everyone was expecting that CEO Marissa Mayer would exit with a Yahoo sale that appears not to be the case. For now, she will be helping with the transition. “For me personally, I’m planning to stay,” Mayer said in a note on Yahoo’s Tumblr page. “I love Yahoo, and I believe in all of you. It’s important to me to see Yahoo into its next chapter.”
Verizon will integrate Yahoo with AOL. It will be lead by Marni Walden, Verizon’s executive vice president and president of the product innovation and new businesses organization.