After few months of rigorous sale process, telecom giant, Verizon Communications has bought Yahoo’s Web assets for $4.83 billion (N1.5tn), which includes Yahoo’s core internet and some real estate business.
The deal which is subject to customary closing conditions, including approval by Yahoo’s shareholders, and is expected to close in early 2017, is yet another milestone for Verizon who is trying to build its digital media and advertising business.
However, the sale does not cover Yahoo’s cash and shares in Alibaba Group Holding, Yahoo Japan, and Yahoo’s noncore patents – Excalibur portfolio. The mentioned assets still belongs to Yahoo and pending the closing Yahoo will continue to operate independently.
“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,” Verizon CEO, Lowell McAdam said.
Yahoo will be integrated with AOL under Marni Walden, President, Product Innovation and New Businesses Organization at Verizon. “Yahoo is a company that has changed the world, and will continue to do so through this combination with Verizon and AOL. The sale of our operating business, which effectively separates our Asian asset equity stakes, is an important step in our plan to unlock shareholder value for Yahoo. This transaction also sets up a great opportunity for Yahoo to build further distribution and accelerate our work in mobile, video, native advertising and social, said Yahoo’s CEO, Marissa Mayer.
Verizon’s other assets include Huffington Post and TechCrunch, which it acquired last year in the AOL deal, and its own mobile video app-go90. The company intends to use data gotten from smartphones into AOL and Yahoo’s digital advertising platforms to compete with Facebook and Google.