Home > Industry > Yahoo Accepts Verizon Deal

Yahoo Accepts Verizon Deal

Yahoo Accepts Verizon Deal

As anticipated, the long drawn out auction process for beleaguered Internet company Yahoo has been finalised after it accepted a US$4.8 billion offer from Verizon. The deal was announced overnight (Monday, US time) and includes Yahoo’s core Internet businesses and some real estate.

Verizon will take Yahoo’s jewels in the crown: its e-mail service, alog with news, finance and sports Web sites, and most importantly its advertising tools.

Little will be left of Yahoo, it seems, apart from a 35.5 percent stake in Yahoo Japan and 15 percent of Chinese e-commerce company Alibaba, worth US$41 billion. Big money, certainly, but not much, considering Yahoo was worth $125 billion at its peak in January 2000.

Verizon plans to combine Yahoo’s operations with another Internet victim – AOL – that it acquired last year, using Yahoo’s extensive advertising technology to attract more advertisers and customers.

The final nail in Yahoo’s coffin will see the end of the four-year reign of CEO Marissa Mayer, who will be left, like the Game of Thrones’ Cersei Lanister in the Red Keep, with few assets – although no one is expecting her to take the Walk of Atonement.

Mayer will receive a severance package worth about $57 million, bringing her total cash and stock compensation during her time at Yahoo to around $218 million. Not bad pay for bringing a company to its knees.

You may also like
BREAKING: Kogan Buys Big Kiwi Retailer In $122.4m Trans-Tasman Push
ACCC Says “Yes” To Optus Amaysim Takeover
Yahoo! Makes A Comeback In Nielson Digital Content Ratings Top 10
Over The Wire Snaps Up Digital Sense For $27 Million
Webcentral To Stay Aussie Owned