Verizon cuts price of Yahoo acquisition by $350 million, deal to close next quarter
Once the deal closes in the second quarter, Verizon will take ownership of Yahoo's email platform, apps, websites and all advertising technology. Some of the more well known properties moving over to Verizon include Yahoo email, Tumblr, Flickr, Yahoo Sports and Yahoo Finance. The remaining assets of Yahoo will mostly consist of a 15% stake in Chinese internet giant Altaba (valued at $35 billion) and a 35.5% stake in Yahoo Japan. These will be spun off into a company called Altaba. The board will be cut from ten members to five, and CEO Marissa Mayer will resign.
For Verizon, the deal gives them a chance to compete for mobile advertising dollars, a business that is currently dominated by huge corporations like Alphabet's Google and Facebook. Verizon started on that path in 2015 when it purchased AOL for $4.4 billion.