Verizon buys Yahoo

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.

Verizon to buy AOL

Verizon Communications is an American broadband and telecommunications company. It was founded as Bell Atlantic and it is the largest US Wireless communication service provider. AOL is an American multinational mass media corporation which develops, grows and invests in brands and websites. The company business spans digital distribution of content, products, and services, which it offers to consumers, publishers, and advertisers.

Recently, Verizon Communication said, it would buy AOL Inc. in a deal valued at about $4.4 Billion to gain access to AOL digital advertising service and content. The deal will see king of mobile phones acquire the one time king of media. Verizon is the largest phone operator in the country, and has growing lines of business offering high speed Internet, as well as business and streaming video services.

But in acquiring AOL, Verizon is buying much more than websites that host streaming content. Along with its video and online advertising technology, AOL owns the Huffington Post, a sprawling collection of international new websites with growing traffic. It also manages a dwindling but profitable dial up Internet business, providing online access for those who live in areas too remote to have broadband or who never canceled their subscriptions.

Verizon with more than 1.5 Billion connected devices has a vast network through which to distribute mobile content. It has been quietly building up its entertainment offerings, but until now has not made any significant acquisitions to bolster its offerings.