Verizon To Pay $4.8 Billion For Yahoo’s Core Business

Megalith

Megalith

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Well, it looks like it’s all over for Yahoo. Verizon is buying the company for $4.8 Billion, and the sale should be officially announced tomorrow. Meanwhile, Mrs. Mayer is laughing all the way to bank.

Verizon, one of the nation’s biggest telecommunications companies, plans to combine Yahoo’s operations with AOL, a longtime Yahoo competitor acquired by Verizon last year. The idea is to use Yahoo’s vast array of content and its advertising technology to offer more robust services to Verizon customers and advertisers. Bloomberg first reported the price of the Verizon deal. Marissa Mayer, who was hired as Yahoo’s chief executive four years ago but failed to turn around the company, is not expected to stay after the deal closes. But she is due to receive severance worth about $57 million, according to Equilar, a compensation research firm.
 
In other news, AOL is still enough of a thing for Yahoo to combine with.
 
Darkswordz said:
Who still uses AOL??
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Lot's of people if you count AOL's web content media business (which is all they are today). Their dial up still does exist as a tiny part of their business in some basement back office somewhere.

Bigbacon said:
must be nice to suck at your job and get 57 million to just live life on for the rest of your days,
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I can't really blame Mayer for trying to save a sinking ship. She was already successful at Google and didn't have to take the job. The press at the time she took over Yahoo basically concluded that she wins either way, if Yahoo succeed she gets paid, if Yahoo fails it was to far gone to save and she still gets paid. She tried all kinds of changes, some more controversial than others, but it's not like there's a text book guide for saving sinking dot.com companies.
 
Curious - Verizon is essentially a service provider. They offer cellular service, phone lines, internet, and maybe cable TV (not sure on the latter). As the CEO of Verizon, what's the play on buying Yahoo? I guess they might try to diversify their offerings, possibly some patents.
 
The irony here is Yahoo stock ended under Mayer higher then any other CEO in it's history.

Also worth noting, Yahoo stock is hovering around $40/Share. AMD is hovering around $4/Share.
 
steakman1971 said:
Curious - Verizon is essentially a service provider. They offer cellular service, phone lines, internet, and maybe cable TV (not sure on the latter). As the CEO of Verizon, what's the play on buying Yahoo? I guess they might try to diversify their offerings, possibly some patents.
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Verizon is #5 in the list of largest cable tv providers in the US.

From the article: "The idea is to use Yahoo’s vast array of content and its advertising technology to offer more robust services to Verizon customers and advertisers." So, basically, ads, Ads, ADS! MOAR ADS!
 
steakman1971 said:
Curious - Verizon is essentially a service provider. They offer cellular service, phone lines, internet, and maybe cable TV (not sure on the latter). As the CEO of Verizon, what's the play on buying Yahoo? I guess they might try to diversify their offerings, possibly some patents.
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They ceased being just a service provider when Verizon bought AOL's media content business, and now with the addition of Yahoo they'll have even more content to market and shovel at their customer base.
 
The analysis that I heard on the radio stated that Verizon saw potential value in combining Yahoo!'s advertising stream with analytics gathered from their subscriber metadata. Targeted ads have value when you control the flow of information on your network and can leverage that to your advantage.
 
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