Verizon to Purchase Yahoo for $4.83 Billion
Months of negotiations took place between Yahoo and Verizon until they’ve finally settled on a $4.83 Billion to sell the tech news, mail, and search giant to Verizon. This adds to Verizon’s powerhouse of subsidiaries that go alongside AOL and Engadget. Yahoo will be merged with AOL. Yahoo’s homepage is a destination for over 43 million people, the company also owns blogging service Tumblr.com and photo service Flickr.com
The deal will leaves Yahoo with its existing cash, a 15 percent stake in Alibaba and investment in Yahoo Japan. Once they have the green light, the company will then change its name and become a “registered, publicly traded investment company.” Yahoo CEO Marissa Mayer, who has spent the last year looking to “unlock shareholder value” won’t lead the merged entity forward, that will be the job of Verizon EVP Marni Walden, who also oversees AOL’s role within Verizon.
Marissa Meyer will remain part of the Yahoo team, she recently released this statement. “I’m incredibly proud of everything that we’ve achieved, and I’m incredibly proud of our team. For me personally, I’m planning to stay. I love Yahoo, and I believe in all of you. It’s important to me to see Yahoo into its next chapter.”
Verizon expects the deal to be completed by the first quarter of next year. Though, the deal will need to still be approved by regulators.
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