CRB Tech Reviews came across the official purchase of Yahoo. So Yahoo is no more an independent company.
Verizon has agreed to pay $4.83 billion for Yahoo.
Tim Armstrong, CEO of AOL when Verizon acquired it for $4.4 billion last year, will run a new group at Verizon that brings together AOL and Yahoo. He said that their mission at AOL is to build brands people love, and they would continue to invest in and grow them.
The sale marks the end of Yahoo’s evolution from influential search pioneer and web portal juggernaut to a once-dominant brand that lost its way.
Parties diverse as Warren Buffett and The Daily Mail were interested in buying Yahoo. But after a sale procedure that went on for months,Verizon long viewed as the front runner, is heading away with Yahoo’s more than one billion active users per month.
Current Yahoo shareholders will keep the company’s lucrative investments in Chinese e-commerce giant Alibaba and Yahoo Japan. They will be spun into a separate and publicly traded business. The deal does not include some patents and Yahoo’s cash.
The Verizon deal need to be approved by regulators and is supposed to be finalized in the first quarter of 2017.
Yahoo first put itself up for sale in February and it fielded multiple bids from different types of buyers . Those included AT&T; private equity firms TPG and Vector Capital Management and Quicken Loans founder Dan Gilbert with financial backing from Berkshire Hathaway CEO Warren Buffett.
According to reports, Yahoo informed the other bidders on Saturday that Verizon had won the process.
Yahoo CEO Marissa Mayer said that Yahoo is a business that has changed the world, and will continue to do so through this combination with Verizon and AOL.
Yahoo is known for being a long-time investor in premium content and created some of the most beloved consumer brands in key categories like news, sports and finance…Enormous respect for Yahoo’s achievements.
Verizon’s acquisition is of core Yahoo, which includes searches, email, advertising products and media business which includes Yahoo Finance. But it did not take over Yahoo’s 15% stake in Alibaba, 35% stake in Yahoo Japan, or Yahoo’s patents, which according to some analysts were valuable during the bidding process.
If this is not destiny then what! Never did Yahoo nor we ever thought that such a business would have to sell itself in bidding.
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