Verizon Communications Inc. has agreed to pay $4.8 billion to acquire Yahoo Inc., ending a drawn-out auction process for the beleaguered internet company. The price tag, which includes Yahoo’s core internet business and some real estate, is a remarkable fall for the Silicon Valley web pioneer that once had a market capitalization of more than $125 billion at the height of the dot-com boom.
The transaction is sure Verizon's AOL internet business, which the company acquired last year for $4.4 billion, by giving it access to Yahoo's advertising technology tools, as well as other assets such as search, mail, messenger and real estate.
It would also mark the end of Yahoo as an operating company, leaving it only as the owner of a 35.5 percent stake in Yahoo Japan, as well as its 15 percent interest in Chinese e-commerce company Alibaba Group Holding Ltd (BABA.N).
Started in 1994 by Stanford graduate students Jerry Yang and David Filo, Yahoo in its early years was the destination of choice for many making their first forays onto the World Wide Web. Today, it is more like a story of how the mighty have fallen for a compnay that was once a household name. For New York-based Verizon, the deal simply adds another piece to the digital media and advertising business it is trying to build. The deal is expected to be announced early today Monday, the 25th of July 2016.
Verizon plans to keep the Yahoo brand, according to a person familiar with its plans.