Verizon confirmed a deal to acquire Yahoo for $4.8 billion in cash. The deal does not include Yahoo’s cash, its shares in Alibaba Group Holdings, its shares in Yahoo Japan, Yahoo’s convertible notes, certain minority investments, and Yahoo’s non-core patents (called the Excalibur portfolio). Yahoo will remain a registered, publicly traded investment company holding these assets, and will change its name once the deal closes.
Yahoo, which was founded in 1994 and is based in Sunnyvale, California, remains one the most visited news and media website, with over 7 billion views per month, along with leading web services with email, sports, etc..
Yahoo claims 600 million monthly active users. Yahoo’s email service has 225 million monthly active users.
Verizon said the acquisition, combined with its AOL property, gives its more than 25 digital content/service brands in areas ranging from sports and entertainment news to online information services.
“Just over a year ago we acquired AOL to enhance our strategy of providing a cross-screen connection for consumers, creators and advertisers. The acquisition of Yahoo will put Verizon in a highly competitive position as a top global mobile media company, and help accelerate our revenue stream in digital advertising.”
Lowell McAdam, Verizon Chairman and CEO
