At its peak Yahoo was worth 125 billion dollars, but since the burst of the dot-com bubble and the changes that followed in the market, the company’s value plummeted. Now, it will be bought by Verizon for 4.83 billion dollars – in cash.
It’s official: Verizon will buy Yahoo Photo Credit: Reuters / Channel 2 News
Following negotiations that were described as “long and tedious,” Verizon, the largest wireless communications provider in the US, announced that it will be acquiring Yahoo for 4.83 billion dollars – in cash.
Verizon is paying slightly more for the purchase than the updated price at which the value of Yahoo has been estimated, but it is still far lower than the company’s peak value during the days of the dot-com bubble – which stood at 125 billion dollars. Verizon announced that the deal, as a part of which it will purchase Yahoo’s entire web property and merge it with AOL, which it also owns, will be completed during the first quarter of 2017.
According to the reports on various news agencies, Yahoo’s cash funds, its stakes in the Alibaba Group and its business in Japan are not part of the deal. Yahoo’s management informed its investors of the sale and its stock trade was brought to a halt.
Chief Executive Officer of Yahoo Marissa Mayer has been the target of much of the blame for the company’s steep decline after selling many of its assets to the Alibaba Group in order to buy other companies, which, like in the case of Tumbler, later lost their value. The estimation is that Mayer will not continue in her role after the move to Verizon, but she is expected to receive 50 million dollars as compensation for selling the company, which will be added to the 100 million dollars she has been reported to have earned since entering her role at Yahoo in 2012.