It's official: Verizon buying Yahoo for $4.8 billion, announcement coming Monday

It's official: Verizon buying Yahoo for $4.8 billion, announcement coming Monday
The mess of Yahoo! finding the right company to buy its failing assets has been a long and drawn out process, but it appears to be coming to an end. As we heard the other day, Verizon has come out as the winner of the Yahoo! sweepstakes. The word is that the official purchase price will be $4.8 billion, just under the reported $5 billion price tag.

According to the Wall Street Journal, that purchase price will include both Yahoo!'s core internet business as well as its real estate in the physical world. Of course, that price is somewhat hard to read. On one hand, Yahoo!'s current market cap of $38 billion is approximately double what it was when Marissa Mayer first took over the company back in 2012. But, on the other hand, Yahoo! had a (very brief) peak market cap of over $100 billion back in 1999/2000, and even had a peak market cap of around $49 billion during Mayer's term as CEO. 

The real question now is what Verizon plans to do with Yahoo!'s technology, properties, and brand. Verizon has been working on building a digital media business and Yahoo! could help with that to a certain extent, but Yahoo!'s own digital media offerings haven't been terribly successful. 

The official announcement of the deal is expected tomorrow, Monday July 25th, so maybe we'll get more information then. 

source: WSJ

FEATURED VIDEO

18 Comments

1. Johnnokia

Posts: 1158; Member since: May 27, 2012

I'm still wondering how is the company sold for $5 billion, whereas its market cap is about $37 billion? Is this an acquisition for some Yahoo segments? Are the huge number of Yahoo patents part of this deal?

2. FlySheikh

Posts: 444; Member since: Oct 02, 2015

Maybe, maybe not.

4. Subie

Posts: 2363; Member since: Aug 01, 2015

It was reported before that their patents would be sold off separately. I didn't think that the patents were worth billions though.

5. trojan_horse

Posts: 5868; Member since: May 06, 2016

Right, and Yahoo! will regret their Tumblr acquisition of $1.1 Billion. a waste of cash.

8. Rafishant

Posts: 396; Member since: Oct 13, 2015

Next up is a trove of about 3,000 patents, which Yahoo is selling in a separate auction, that is expected to fetch more than $1 billion. Yahoo will need to figure out what to do with its stakes in Yahoo Japan Corp., majority-owned by SoftBank Group Corp., and Chinese e-commerce company Alibaba Group Holding Ltd., considered to make up the majority of Yahoo’s roughly $37 billion market value today. So this is only a partial acquisition.

9. joevsyou

Posts: 1091; Member since: Feb 28, 2015

yahoo is a public company, It's extremely complicated because you are dealing with the shareholders. The share holders are the group who own the largest chunk. This number doens't have to be 51% it can be just 30%. They would call for a meetting and if everyone agrees at a price and they sell their hold to whom ever.

18. slaggyb

Posts: 218; Member since: Oct 19, 2011

I remember when Marrisa Mayer said BlackBerry is dead and that all yahoo employees should throw away their Blackberry's and get either the iPhone or Samsung phones as they will no longer support any BlackBerry's. BlackBerry is still standing and Mayer has finally sold yahoo to Verizon. He who laughs last always laughs best. Posted using the Awesome BlackBerry Passport SE.

3. lmao2016

Posts: 82; Member since: Mar 17, 2016

Where it will die completely

6. jeroome86

Posts: 2314; Member since: Apr 12, 2012

It's official. I'm leaving my Yahoo email. Hey Verizon. Go Bleep yourself! Can you hear that?

7. Fona13A unregistered

I hope they kill off Tumblr too, and slowly.

10. joevsyou

Posts: 1091; Member since: Feb 28, 2015

tumbler eww, I don't know how that site grows.

14. Amroze

Posts: 597; Member since: Jul 04, 2016

Why, what's wrong with tumblr? I use it everyday.

12. trojan_horse

Posts: 5868; Member since: May 06, 2016

And why would you want Tumblr to die? Just curious.

11. joevsyou

Posts: 1091; Member since: Feb 28, 2015

I guess i won't be seeing no more articles/ad's talking good about t mobile again which is probably why they bought it lol

13. Boybawang

Posts: 205; Member since: Jun 02, 2013

Yahoo should regret when it turned down Microsofts 44.6 Billion offer few years back then

15. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

I just don't get the aquusition of AOL & Yahoo by a carrier. Especially the largest carrier in the USA.

16. TrackPhoneUser

Posts: 256; Member since: Oct 21, 2015

Even more bloatware to be featured on their phones now

17. Arthurhkt

Posts: 723; Member since: Apr 19, 2012

I kinda wonder why had Apple not interested to buy out Yahoo? I mean out of any other major player in this market, only Apple left doesn't have their own search engine.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.