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Once Valued at $125B, Yahoo's Web Assets To Be Sold To Verizon For $4.83B, Companies Confirm

Posted by msmash on from the big-shark-small-shark dept.

The reports were spot on. Verizon Communications on Monday announced that it plans to purchase Yahoo's Web assets for a sum of $4.83 billion in cash. The multi-billion dollars deal will get Verizon Yahoo's core internet business and some real estate. The announcement also marks a remarkable fall for the Silicon Valley web pioneer, which once had a market capitalization of more than $125 billion. For Verizon, the deal adds another piece to the mammoth digital media and advertising empire it owns. The deal is expected to close early 2017. CNBC reports: The transaction is seen boosting Verizon's AOL internet business, which the company acquired last year for $4.4 billion, by giving it access to Yahoo's advertising technology tools, as well as other assets such as search, mail, messenger and real estate. It also marks the end of Yahoo as an operating company, leaving it only as the owner of a 35.5 percent stake in Yahoo Japan, as well as its 15 percent interest in Chinese e-commerce company Alibaba. In December, Yahoo scrapped plans to spin off its Alibaba stake after investors worried about whether that transaction could have been carried out on a tax-free basis. It instead decided to explore a sale of its core assets, spurred on by activist hedge fund Starboard Value. Forbes has called it one of the "saddest $5B deals in tech history."Yahoo CEO Marissa Mayer, who was expected to leave -- or get fired -- said she intends to stay. "For me personally, I'm planning to stay," Mayer said in a note on Yahoo's Tumblr page. "I love Yahoo, and I believe in all of you. It's important to me to see Yahoo into its next chapter."

5 of 206 comments (clear)

  1. Verizon is smart to do this. by Anonymous Coward · · Score: 5, Funny

    There is nothing sweeter than those juicy Geocities page views. That's the crown jewel as far as I'm concerned.

    1. Re:Verizon is smart to do this. by GrumpySteen · · Score: 1, Funny

      Found Joe the Plumber!

    2. Re: Verizon is smart to do this. by Hognoxious · · Score: 5, Funny

      Ah. I'd assumed Verizon were getting paid to take them.

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
  2. Re:Really Meyers thinks she is staying? by Jahta · · Score: 5, Funny

    "For me personally, I'm planning to stay," Mayer said in a note on Yahoo's Tumblr page. "I love Yahoo, and I believe in all of you. It's important to me to see Yahoo into its next chapter."

    Presumably she means Chapter 11.

  3. Next chapter by Anonymous Coward · · Score: 3, Funny

    "It's important to me to see Yahoo into its next chapter."

    I guess she means Chapter 11...