Verizon buys yahoo in a multi billion dollar deal

Verizon Buys Yahoo in a multi-billion Dollar deal of the year

In recent events Verizon, which is the largest telecommunication provider in USA has bought Yahoo for a
whooping $4.83 Billion dollar. Verizon is an American giant in wireless carriers and ranks 13 in Forbes 500 list. This deal has ended the 20 year run of yahoo as a independent business as Verizon will have YAHOO and Tech30 which are responsible for digital advertising.

 

YAHOO will still have stakes worth $40 Billion

Although Yahoo Will still have it’s stake in Alibaba and Yahoo Japan. Yahoo was 3rd in Digital Advertising Industry after Google and Facebook. Speculation started in end of 2015 that Yahoo is looking for a buyer. The competition was tough as Warren buffet and Daily mail were interested in Buying yahoo but it was Verizon who came on top . This deal also contains some patents and Yahoo’s cash. The deal is set to be finalized in the first quarter of 2017.

 

Words from Chief Executive Officer of AOL Inc.

“We have enormous respect for what Yahoo has accomplished: this transaction is about unleashing Yahoo’s full potential, building upon our collective synergies, and strengthening and accelerating that growth,”

 

Yahoo was not doing good

It’s been said that yahoo was losing it’s battle with Google and Facebook in the race of being on the top of the internet chain. Yahoo was losing a lot of money every year. The company started in 1995 and was once at the top but the rise of Google led to the downfall of Yahoo.
Why Yahoo sold itself

What an irony it is once the market leader of the internet is now being sold. Yahoo had there owned reason to sell themselves and the reasons are-

 

1. Yahoo was lagging behind it’s competitors

Yahoo has the 3rd largest number of internet users behind Google and Facebook. but over the decade Yahoo lost a subsequent amount of users affecting their advertising and search traffic revenue badly.

 

2. The company is getting narrowed

Yahoo has a share of 15% in the Chinese eCommerce company Alibaba and with the stakes in Alibaba, the company is earning amazingly. Their Alibaba shares have worth more than Yahoo’s whole business.

 

3. Share holders are putting continuous Pressure on Yahoo

We must all admit Yahoo was not doing good as it lost business worth 4.4 billion $ last year and the company has suffered some heavy losses in the last decade with its shareholder facing losses.

 

Lets see the performance of Yahoo after acquisition by Verizon