After a month long bidding process
and many layoffs, Yahoo has finally found a buyer. Verizon (which owns AOL, which
owns TechCrunch) is officially acquiring Yahoo core business for $4.83 Billion
in cash, which includes Yahoo advertising, content, search and mobile
activities.
The purchase will boost Verizon AOL
Internet business, which it bought last year for $4.4 Billion as it gains
access to Yahoo’s ad technology tools, BrightRoll and Flurry and search, mail
and messenger assets. Verizon, the No 1 U.S. wireless operator, has in recent
years looked to mobile video and advertising for new sources of revenue in an
over saturated wireless market. It has also scaled back on its Fios TV and
internet service.
Verizon could combine data from AOL
and Yahoo users in addition to its more than 100 Million wireless customers to
create data to help advertisers specifically target users based on online
behavior and preferences. Yahoo will continue as an independent company until
the deal receives shareholder and regulatory.
The sale doesn’t include Yahoo’s cash,
its shares in Chinese e-commerce giant Alibaba Group Holding Ltd, shares in
Yahoo Japan, Yahoo convertible notes, certain minority investments or Yahoo
non-core patents. Verizon prevailed over rival bidders for Yahoo, including
AT&T Inc. and private equity firm TPG Capital Management LP.
No comments:
Post a Comment