Verizon Communications, the US telecom giant has announced today to buy Yahoo's core assets; search and advertising operations for $4.83 billion.

The deal marks the end of a phenomenal era for Yahoo, one of the pioneers in the early internet era, which had a valuation of more than $100 billion before the dot com burst in 2000.

Also in 2008, Yahoo rebuffed Microsoft’s $44 billion takeover bid. Verizon is likely to merge Yahoo with media technology company AOL to create a digital hub, to take on the IT giants Google and Facebook.

The deal is expected to close in Q1 of 2017. Last year, Verizon bought AOL for $4.4 billion. Until the closing, Yahoo will continue to operate independently and can offer and improve its own products and services for the users, developers, advertisers, and partners.

Yahoo failed to match rivals in changed Internet scenario

Stanford University students Jerry Yang and David Filo created Yahoo in 1994 as "Jerry and David's Guide to the World Wide Web". Later, Yang and Filo finalized the name “Yahoo!”.

Itbecame the search engine to the infant internet. Though Yahoo remained a major online force for almost 2 decades, it lagged its rivals in monetizing its audience through advertisement linked to customers' online activities.

Over the last few years, Yahoo struggled to keep up with the pace of the modern internet advertising landscape. Also, it failed to remain competitive in many of its core markets.

Earlier this month, Yahoo reported a quarterly loss of $440 million.

The trio to become top global mobile media company

The Combination of Verizon, AOL and Yahoo will create a new powerful competitive rival in mobile media, and also will create a scaled alternative offering for publishers and advertisers.

The trio will create one of the largest portfolios of global brands with broad distribution capabilities.

Yahoo and AOL will jointly have more than 25 brands in their portfolio for future growth and investment. Yahoo’s key assets are top content brands in major categories like finance, News, and sports.

Also, Yahoo Mail is the world’s one of the most popular email services which boast of approximately 225 million users’ activity per month.

Other technology tools include Brightroll, Flurry, and Gemini. Yahoo, Verizon, and AOL will cater to more than 1 billion customers globally after the joint operation takes off.

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Post acquisition, Verizon is slated to double the size of its Internet advertising business.

Yahoo’s stake in Alibaba and Yahoo Japan excluded from acquisition

The acquisition will not include Yahoo’s cash, its shares in Yahoo Japan and Alibaba Group Holdings, non-core patents, minority investments and convertible notes.

Yahoo’s present management will retain these assets, which will become a registered investment company after the deal is closed.

Yahoo’s shares in Alibaba and Yahoo Japan are estimated to be valued at $31.2 billion and $8.3 billion respectively.

Yahoo CEO Marissa Mayer to continue

CEO Marissa Mayer announced that she intends to stay back at the company once the deal is closed.

Verizon's EVP and President of product innovation, Marni Walden, who will head the combined company, told the new leadership team has yet to be determined.

Ex-Googler Marissa was hired in 2012 as President and CEO to turn around the fortunes of the organization but was not able to stop the downfall of the company during her tenure.

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