Verizon acquires Yahoo’s operating business for $4.83 B in cash

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Verizon Communications announced that they are all set to buy Yahoo Inc’s core internet properties for $4.83 billion. This acquisition will mark the end of the Web pioneer, Yahoo. The two companies have signed agreement under which Verizon will buy Yahoo.

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With this acquisition, Verizon will take over the search engine, messenger, and email and advertising tools of Yahoo and combine it with AOL unit of Verizon. Yahoo’s main assets include finance, news, sports, email services and 225 million active users. Though Yahoo has confirmed that Yahoo cash, shares in Alibaba Group Holdings, shares in Yahoo Japan, Yahoo convertible notes and Yahoo’s non-core patents will be held by Yahoo itself. They will have no part in the acquisition.

Yahoo has been brought by Verizon in cash, just a month after Yahoo auctioned its patents. Yahoo’s chief executive officer has said that she will remain the CEO of Yahoo, but the name of the company will be changed after the deal with Verizon is closed. She also said that Yahoo has always aimed to provide a better world, with amazing connectivity. And now with the acquisition, Yahoo will combine with Verizon and AOL, and look forward and work towards achieving this goal.

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Yahoo was found in 1994 and since then it has been growing rapidly. It was considered to be the most popular search engines for a long time. But from the past few years, the company has been struggling. A lot of decisions of the company have gone wrong, due to which the company decided to sell of its shares.

Under this acquisition Yahoo will have to pay a breakup fee of $144.8 million if at any point Yahoo wants to break the agreement. The acquisition is not predicted on any performance targets for Yahoo business. The agreement is subject to approval by stakeholders, and has customary closing conditions. The deal is expected to close in the first quarter of 2017.

Just a year back Verizon acquired AOL with aim of enhancing their goal of providing cross-screen connection to the customers and advertisers. And now with the acquisition of Yahoo, Verizon wants to create its competitive position as a global media company. They will try to grow their presence and increase their revenue in digital advertising.

Now one has to wait and see that how Verizon will use the potential of Yahoo and its popularity, to grow their business and make a stronger presence in the market and world.