Today, Verizon announced they are acquiring Yahoo for $4.83 billion in cash. It seems like this has been many years in the making – not the Verizon acquisition, yet Yahoo finally being acquired. It has been speculated for years that Yahoo would be acquired for years within the tech industry.
Lowell McAdam, Verizon Chairman and CEO, said: “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.”
Yahoo did initially put itself up for sale in February of 2016 and did receive bids from countless suitors. It has been reported that potential suitors included the likes of likes of AT&T, Dan Gilbert founder of Quicken Loans as well as private equity firms.
Marissa Mayer, CEO of Yahoo, said: “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.”
Marissa Mayer has been under investor scrutiny for quite while as CEO of the company. At this time it is not clear if she will stay on with Yahoo.
The acquisition of Yahoo includes search, advertising, email, and the media business which does include Yahoo Finance. Verizon does want to compete with Facebook as well as Google with respect to online advertising.
The transaction is subject to approval by Yahoo’s share holders, as well standard regulatory approvals.