Telecom Giant Verizon Buys Yahoo and Plans to Merge it with AOL Unit
Yahoo, once the darling of Silicon Valley and one of the most prominent names on the Internet, was founded in 1994. It remained a dominant player for years but gradually lost its shine with competition coming in from Google, Facebook Inc and others.
Way back in 2008, Yahoo turned down Microsoft's $45 billion offer saying that the deal undervalued the company and now Yahoo has agreed to sell its core Internet business to Verizon for a $4.83 billion cash deal. The drop in value is simple because Yahoo lost its luster over the years, struggling to keep up with competition and revenue.
On Monday, Verizon Communications Inc. the New York City based, telecommunications company said it is acquiring Sunnyvale, California based Yahoo's core internet properties for $4.83 billion,. That marks the end of all speculations over the auction process going on for months.
┬áVerizon for a while has been looking at opportunities from mobile video and advertising sources to perk up revenue outside the highly competitive and concentrated wireless market.
Verizon plans to combine Yahoo's search, email and messenger assets and its advertising technology tools with its AOL unit. Verizon acquires AOL for $4.4 billion last year.
Yahoo's CEO Marissa Mayer, says that she plans to remain with stay till the deal is completes.
Marni Walden, Verizon's head of product innovation and new business will head the merged internet unit. She says no final decision has been taken on the management team.