Yahoo is the only company bought 4.83 billion dollars!
Verizon Buys Yahoo for Just $4.83 Billion
In a development that sent shockwaves throughout the tech community, it emerged that Verizon, one of the biggest telecom companies in the world, had bought Yahoo for just $4.83 billion in cash. This purchase comes soon after Verizon paid $4.4 billion to buy AOL.
Yahoo CEO Marissa Mayer, who has been subjected to a lot of criticism for her role in Yahoo’s downfall said, “Yahoo and AOL popularized the Internet, email, search and real-time media. Its poetic to be joining forces with AOL and Verizon as we enter our next chapter focused on achieving scale on mobile.”
Verizon CEO Lowell McAdam was very enthusiastic and he said that Yahoo would be integrated with AOL and the new company would be led by Verizons Marni Walden, who is currently the president of Verizon’s Product Innovation and New Businesses organization.
McAdam said, “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.”
Marissa Mayer was equally enthusiastic about the deal, although nobody could figure out why. She said, “I’m incredibly proud of everything that we’ve achieved, and I’m incredibly proud of our team. For me personally, I’m planning to stay. I love Yahoo, and I believe in all of you. It’s important to me to see Yahoo into its next chapter.”
Tim Armstrong, CEO of AOL said, “We have enormous respect for what Yahoo has accomplished: this transaction is about unleashing Yahoo’s full potential, building upon our collective synergies, and strengthening and accelerating that growth. Combining Verizon, AOL, and Yahoo will create a new powerful competitive rival in mobile media, and an open, scaled alternative offering for advertisers and publishers.”
The purchase of Yahoo is a significant one for Verizon as it would now combine its Yahoo and AOL assets into a large portfolio of famous global brands. Together, Yahoo and AOL will have 25 brands such as Yahoo Mail, Flickr, and Tumblr of Yahoo and Huffington Post, , Engadget and AOL.com of AOL.
Lowell wants to take on Facebook and Google and build a global media company. The question is whether combining two failed companies Yahoo and AOL will help him do that.
It is easy to forget that back in 2000, Yahoo was just as big as Google and Facebook are today. Yahoo was then worth $125 billion, just before the stock market crash. It has since diminished in value greatly. Just a few years ago, Microsoft had offered to buy Yahoo for $26 billion. But the Yahoo board had rejected the deal.
Now, with a new CEO Marissa Mayer, who became better known for her fashion than for her business skills, and after having spent over $3.3 billion acquiring over a 100 companies, Yahoo has managed to get itself sold for just over $4 billion!
Author: Raghav Hegde – India