It's not exactly a secret that Yahoo has been struggling recently, seeming unfocused and not having any real idea what to do with its products and services. To that end, the company has been looking for a buyer for the last four months, with multiple parties interested in acquiring the stricken, fallen colossus. That process has now come to an end, resulting in Verizon purchasing the 'operating business' (the day-to-day activities and products) of the former web giant for $4.83 billion.
The deal will complement Verizon's other former internet behemoth, AOL, in what is being seen as a deal to boost the ad services Verizon offers. Among Yahoo's current ad offerings, BrightRoll is a programmatic platform which measures the performance of digital video adverts across the web, mobile, and smart TVs. Despite the fact BrightRoll is a subsidiary - Yahoo acquired the company in 2014 for $640 million - it is included in the deal with Verizon, which should majorly boost how Verizon analyses video ad offerings. Flurry, also being sold to Verizon, is a mobile apps analytics service, and Gemini, a search advertising solution. Verizon will take control of the Yahoo's news, mail, and other consumer-focused products - it'll be interesting to see how they fit in under the telecommunications corporation, or if the Yahoo brand will disappear. Current Yahoo CEO Marissa Mayer wants to remain as boss, but Reuters reports it is unclear who the new leadership team will be.
The stakes Yahoo has in Yahoo Japan and Chinese company Alibaba are not included, which will remain with a re-formed, renamed Yahoo once the sale closes, and will live on as a publicly traded investment company. The deal is expected to close in early 2017, subject to regulatory agreements. Until then, Yahoo will continue to operate independently.
- Source:
- Verizon
- Via:
- Reuters
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