In a recent press release, Verizon announced that it is going to acquire Yahoo’s operating business for approximately $4.83 billion cash.
Verizon said, “Verizon Communications Inc. (NYSE, Nasdaq: VZ) and Yahoo! Inc. (Nasdaq: YHOO) today announce they have entered into a definitive agreement under which Verizon will acquire Yahoo’s operating business for approximately $4.83 billion in cash, subject to customary closing adjustments.”
As per Yahoo, it has a global audience of more than 1 billion active users which also includes 600 million monthly mobile users. Yahoo also has tie ups with Google and Bing for search advertising which would be great for integration with AOL, since AOL handles most of Microsoft’s advertising. Yahoo will be integrated with AOL under Marni Walden, EVP and President – Product Innovation and New Businesses Organization at Verizon.
“Just over a year ago we acquired AOL to enhance our strategy of providing a cross-screen connection for consumers, creators and advertisers. The acquisition of Yahoo will put Verizon in a highly competitive position as a top global mobile media company, and help accelerate our revenue stream in digital advertising”, said Lowell McAdam, CEO and Chairman Verizon.
Yahoo with Verizon and AOL will be one of the largest portfolios of owned and partnered brans globally with extensive distribution capabilities. There will be more than 25 brands in the combined portfolio of Yahoo and AOL.
Deal will expectedly be closed in Q1 of 2017, subject to customary closing conditions, approval by Yahoo’s shareholders and regulatory approvals. Until closing, Yahoo will operate independently.
Verizon To Acquire Yahoo For More Than $4 Billion!,