Verizon Acquiring Yahoo! for $4.8 Billion in Cash25 Jul, 2016 By: Erik Gruenwedel
As expected, Verizon July 25 formally announced it is acquiring venerable dotcom pioneer Yahoo for $4.83 billion in cash. The deal, pending regulatory approval, is expected to close in the first quarter of 2017.
Verizon eyes melding Yahoo’s 1 billion active monthly users, including 600 million monthly mobile users, to its wireless distribution network, which includes recently launched mobile app go90.
“Just over a year ago we acquired AOL to enhance our strategy of providing a cross-screen connection for consumers, creators and advertisers. The acquisition of Yahoo will put Verizon in a highly competitive position as a top global mobile media company, and help accelerate our revenue stream in digital advertising,” CEO Lowell McAdam said in a statement.
Until closing of the transaction, Yahoo will operate as a separate entity headed by CEO Marissa Mayer.
The sale does not include Yahoo’s cash, its shares in Alibaba Group Holdings, its shares in Yahoo Japan, bonds, certain minority investments, and non-core patents (called the Excalibur portfolio).
These assets will continue to be held by Yahoo, which will change its name at closing and become a registered, publicly traded investment company. The company will provide additional information about the investment company at a future date.