After months of speculations, Yahoo has finally found a buyer for its core business. As both companies confirmed yesterday, US Telecomms giants Verizon will acquire Yahoo’s content and advertising assets for $4.83 billion in an all-cash deal. A little more than a year after Verizon acquired AOL (including well-known online media brands such as TechCrunch, Engadget and Huffington Post), yesterday’s deal further bolsters Verizon’s reach in the digital world. According to internal metrics, Yahoo’s online properties reach a global audience of more than 1 billion users a month – an audience that Verizon plans to monetize using advertising technology acquired in both the AOL and Yahoo deals.
Considering that Verizon’s primary fields of operation, i.e. fixed-line and mobile telephony as well as broadband internet services have matured
and offer limited growth potential, the company clearly seeks ways to diversify its business and find new revenue sources. With AOL and Yahoo,
Verizon now owns two of the largest online content networks in the United States and worldwide, along with the advertising solutions to take
advantage of their newly acquired reach in the online world.
Is yahoo worth 4.8 billion?
In 2000, Yahoo was worth $125 billion. In 2008, it rejected a $44 billion buyout from Microsoft, now it has sold to Verizon for $4.83 billion. The transaction ends the independence of one of Silicon Valley’s most iconic pioneering companies. Sad as it is one cannot help but mention that Yahoo were destroyed by their own doing. Watching the technology speedtrain pass you by is a very bad idea especially in Silicon Valley. Ask Nokia. Yahoo remains largely the same company it was a decade ago — a portal that hundreds of millions of users rely on for everything from news and weather to key functions like email and games like fantasy football. As the attention of the world shifted to smartphone apps, Yahoo’s last advantage in the desktop world began to fade.
Yahoo has been swallowed by a giant that enables millions to access the internet everyday. One can only hope that this yields positive results for the tech has been.