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Verizon to buy Yahoo for $5 billion
Verizon is expected to announce plans to buy Yahoo Inc. for $5 billion today, according to Reuters. An official announcement of the deal is expected to be made in the next few hours, prior to the opening of the New York Stock Exchange. As you may recall, Yahoo confessed it would begin investigating “strategic alternatives” back in February.
The move will add another huge – if embattled – internet giant to Verizon’s existing stable which also acquired AOL last year. Verizon will gain not only Yahoo’s search technology but also its advertising business and mail and messaging tools. Yahoo’s physical properties will also become Verizon owned.
As Reuters notes, the deal will also “mark 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 Group Holding Ltd (BABA.N).”
Verizon is expected to “bolt on” existing Yahoo services like Yahoo Finance to its existing media properties through AOL including The Huffington Post, Engadget and TechCrunch. Verizon’s market capitalization currently sits around the $220 billion dollar mark (Yahoo was once valued at $125 billion back in the year 2000). Yahoo’s “war-time” CEO Marissa Mayer is not expected to keep her job following the acquisition.
How do you think Verizon will implement Yahoo’s properties? Is this a good deal or a waste of money?