Verizon picks Yahoo for $4.8bn in confirmed deal
San Francisco: Verizon Communications on Monday confirmed a $4.83 billion buyout of online pioneer Yahoo. The latest buyout puts an end of an era for the company that once defined the internet. Yahoo has agreed to sell its core assets to telecom giant Verizon for $4.8 billion, ending a 20-year run by the internet pioneer as an independent company. Both the firms have confirmed the deal.
Lowell McAdam, Chief Executive, Verizon, said: “Yahoo would be integrated into its recently acquired AOL unit to create a top global mobile media company, and help accelerate our revenue stream in digital advertising.”
The $5-bn acquisition deal puts Yahoo’s valuation at dramatic fall as its valuation was over $100 billion before the dot-com collapse in 2000 and which in 2008 spurned a $44 billion bid from Microsoft.
The $5-bn acquisition deal puts Yahoo’s valuation at dramatic fall as its valuation was over $100 billion before the dot-com collapse in 2000 and which in 2008 spurned a $44 billion bid from Microsoft.
Yahoo CEO Marissa Mayer said, “Today is a big day for Yahoo. For me personally, I’m planning to stay. I love Yahoo.”
Before and after dot-com bubble, one company is always remembered i.e. Yahoo. Yahoo did well and at the peak of the dot-com bubble was even valued at $125 billion. While success came easy things quickly took a nose dive and today, we have heard that one of the internet’s most well-known portals is about to be sold for a mere $5 billion. The worst bit is, that in the vast internet universe today, nobody really cares, according to media reports.
Today, Yahoo Mail still struggles, while Messenger is almost non-existent. The only known Yahoo property today is Flickr, which was acquired by company in 2005. It may not make a dent in the universe, but Flickr still stands strong today and is way better (especially after going free for all) than the Mail service which offers nothing new (apart from ads).
Yahoo remains a major force online, but has lagged its rivals in its ability to ‘monetize’ its audience through advertising that is linked to customers’ browsing and other online activities. It’s uncertain whether the company will die a slow death, or will simply be culled altogether. Yahoo will always be known as the pioneer that once existed.
