Skip to main content

Verizon taken over Yahoo in $4.5 billion deal

Get updates direct: Subscribe via email
Tinuku ~ Verizon Communications Inc. has taken over Yahoo Inc in US$4.5 billion deal. Verizon has taken over Yahoo and completed a US$4.5 billion deal that will usher in the new management team to try more advertising revenue from one of the most historic and famous internet brands.

Tinuku Verizon taken over Yahoo in $4.5 billion deal

The closing of Tuesday's sale ended the 21-year history of Yahoo as a public company and also ended five-year CEO Marissa Mayer and will leave Yahoo with a compensation package of US$127 million, severance pay and shares.

Verizon is the number one wireless carrier of the United States, combining Yahoo with AOL purchased two years ago to form a new venture called Oath led by AOL CEO Tim Armstrong. Oath has more than 50 brands including HuffPost, TechCrunch and Tumblr.

"We are excited to focus on being the best company and best partner, but you should all know that I am full of nostalgia, gratitude and optimism," Armstrong said.

Verizon will not get Yahoo's valuable shares in two Asian giant internet companies Alibaba Group and Yahoo Japan. They will become a new company called Altaba who will also inherit Yahoo cash of US$8 billion and money that may be paid in shareholder litigation lawsuits.

Verizon relies on a combination of Yahoo and AOL to build a strong third alternative in the digital advertising market that is currently dominated by Google and Facebook. But Yahoo's advertising revenue has dropped almost in the last decade.

At the end of last year, Yahoo's annual revenue after subtracting its advertising commissions had shrunk to US$3.5 billion or down 35 percent from its peak in 2008. Google's revenue last year came to US$73 billion after subtracting the advertising commission.

Comments

Popular posts

Denso, Ericsson, Intel, NTT DoCoMo and Toyota build big data

Alibaba's profit doubled for second quarter this year

Gesits electric motorcycle setup 100,000 units in 2018

China established first cyber-court in Hangzhou

Future Mobility setup electric cars hit global markets 2019