- Sep 20, 2021
This marks an end of era for a company that once defined the internet. Verizon one of the largest telecommunication carriers in the US has agreed to buy Yahoo for $4.83 billion. The American technology major still holds billions of visitors a month as a front door web for early generation of internet users ends its journey as an independent company.
According to the board of the Sillicon Valley Company, Yahoo is going to sell its core internet operations and land holdings to the Verizon communication. After the sale, Yahoo shareholders will be left with about $41 billion in expenditure in the Chinese e-commerce company Alibaba, as well as Yahoo Japan and a small portfolio of patents. The deal, which does not include Yahoo’s stake in Chinese online giant Alibaba, is expected to close by the first quarter of next year.
On the sale of Yahoo’s core internet operations Marissa Mayer, chief executive of the company comments, “Yahoo is a company that has changed the world, and will continue to do so through this combination with Verizon and AOL.”
The company once was in the front row in web search business and valued around $125 billion in 2000. There are so many reason behind this step by Yahoo, and one of its ratiocination is that Yahoo’s value lies in its users, more than any sites other than Google and Facebook. But over the last decade it has lost advertising revenue and search traffic to those same companies.
The deal, expected to close within the first quarter of next year, though it still needs approval from Yahoo shareholders.