Yahoo Up For Sale Finally To Verizon at $4.83 Billion Stake
San Francisco: The company that ruled the internet is being bought by Verizon, the US telecom giant for $4.83 billion after the five month auction. Owing to its steep descent in the revenue from the past eight years, Yahoo Inc. would be parting with its email services and its websites including news, sports and finance. It still has hold on the Yahoo’s cash holdings, its stake in Alibaba, Yahoo’s Japan shares, convertible note, some minority investment and Yahoo's "non-core patents."
Verizon stated that the left-over ownings of the Yahoo will alter its name and turn into an investment company. The Verizon deal is anticipated to close in 2017's first quarter.
The price tag for the deal is well below the $44bn Microsoft offered for Yahoo in 2008 or the $125bn it was worth during the 2000 era when yahoo was at its height. Yahoo reportedly lost 440 million $ loss last week but said that the strategic alternatives were working their best for the circumstances.
AOL chief executive Tim Armstrong said the transaction was about "unleashing Yahoo's full potential", and creating a major mobile media player. Together AOL and Yahoo will have more than 25 brands, including Yahoo Mail, Flickr and Tumblr as well as AOL's Huffington Post and Techcrunch news sites.
Yahoo CEO Marissa Mayer said, " 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."
In a message to employees, Mayer said about her future, writing on Tumblr, "I'm incredibly proud of everything that we've achieved, and I'm incredibly proud of our team. For me personally, I'm planning to stay. I love Yahoo, and I believe in all of you. It's important to me to see Yahoo into its next chapter."
Verizon is fully upbeat on tackling the challenges ahead that will make it a lead in the digital market ruled by Google and Facebook presently.