Report: Verizon to buy Yahoo for $5 billion

Report: Verizon to buy Yahoo for $5 billion
Although it is not a done deal and could still fall apart, those in the know say that Verizon has won the bidding for Yahoo and will make the announcement in a couple of days. The rumored price of the purchase is $5 billion, although the transaction does not include intellectual property. Yahoo's core patents are being sold separately in a transaction that could bring the company hundreds of millions of dollars.

Verizon, which purchased AOL last year for $4.4 billion, is looking to position itself as one of the top players in mobile advertising alongside other big names in this space like Google parent Alphabet, and Facebook. Yahoo has a number of web based properties that offer content and useful tools for mobile users.

To claim its prize, Verizon beat out fellow wireless carrier AT&T which had also been involved in the bidding. By one account, Verizon will see an increase of 200 million in the number of online visitors following the closing of the deal. In addition, Verizon should be able to obtain more data which will allow it to make ads more relevant for individual consumers.

If the deal closes, Verizon will own a couple of names that were once gigantic in the early days of the internet. Millions used AOL to get online while Yahoo was the top search engine of that era. The purchase of Yahoo will no doubt leave Yahoo's controversial CEO Marissa Mayer without a job. There is no need hold a bake sale for the Yahoo executive; a golden parachute will probably fatten her bank account by some obscene amount..


source: Bloomberg

FEATURED VIDEO

21 Comments

1. tedkord

Posts: 17317; Member since: Jun 17, 2009

Dinosaurs buying dinosaurs.

2. trojan_horse

Posts: 5868; Member since: May 06, 2016

Haha, more like a patient trying to heal another patient. Buying Yahoo! is a waste of cash.

13. ibend

Posts: 6747; Member since: Sep 30, 2014

right.. just like microsoft mobile buying nokia.. both die in the end

3. 87186

Posts: 312; Member since: Aug 01, 2014

given verizon's position in the mobile market, renders the above comments moot. armchair CEO's know best, I suppose.

17. TheOracle1

Posts: 2216; Member since: May 04, 2015

Verizon's position in the market is under threat and this purchase proves it. They need to restructure their revenue stream because competition in mobile is getting tough. They certainly haven't helped themselves by sticking with cdma and locking down their network. Buying a ball and chain like yahoo proves their heads are still stuck up their arses. Both At&t and T-Mobile have announced free data and voice roaming packages (actually At&t is $50) for the Rio Olympics. Verizon can't simply because of their cdma network than hardly anyone uses anymore.

4. jeroome86

Posts: 2314; Member since: Apr 12, 2012

Have a yahoo email which I don't really use anymore. Just for junk mail now.

7. Scott93274

Posts: 6032; Member since: Aug 06, 2013

Same here.

19. Amroze

Posts: 597; Member since: Jul 04, 2016

Mines 4 years old, hardly using. Gmail I prefer.

14. ibend

Posts: 6747; Member since: Sep 30, 2014

they deleted my email account just because I didnt visit it for several months.. and there is no way to recover that account, sigh.. I never use yahoo since then

5. fiji.siv

Posts: 95; Member since: Nov 25, 2015

If you think Verizon phones are bloated now, just wait until they also come with Yahoo Mail, Yahoo Messenger, Yahoo Weather, Yahoo News, Yahoo News Digest, Yahoo Sports, Yahoo Search, Yahoo Finance, Yahoo Video Guide and Flickr.

6. Scott93274

Posts: 6032; Member since: Aug 06, 2013

Just the thought of that sickens me.

8. Babadook

Posts: 230; Member since: May 24, 2016

No joke. A 32GB phone will ship with only 10GB available....

10. palmguy

Posts: 979; Member since: Mar 22, 2011

That's alot of Vz red. Phones will bleed bloatware

11. Nopers unregistered

I'm from the UK and the thought of that much carrier bloat confuses me, we have network locked phones and maybe 2 or 3 carrier apps like amazon kindle or something.... I saw what Verizon pimps out the moto Z series with and it's shocking.

9. Kcklub

Posts: 12; Member since: Jul 18, 2016

I thought the chinese would get a hold of this one.

12. JunitoNH

Posts: 1946; Member since: Feb 15, 2012

Why????? Another Tumblr deal

16. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Looks like Yahoo CEO will need to find a new job.

22. Amroze

Posts: 597; Member since: Jul 04, 2016

She sexy though....

18. YOURDADkid unregistered

Can't believe this!! Have worked with Verizon and I was believing Verizon BODs and MDs have some sense, But this deal Proves that they have lost it! Lol

20. Kcklub

Posts: 12; Member since: Jul 18, 2016

Verizon is going to sell it to the Chinese for more, you watch,

21. Kcklub

Posts: 12; Member since: Jul 18, 2016

Verizon is going to sell it to the Chinese for more, you watch,

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.