Yahoo’s days as an independent company are almost over – the company’s core business has just been sold to telecom giant Verizon for $4.8 billion in cash. This marks the end of an era for a company once valued around $140 billion at its peak.
CCTV America’s Karina Huber reported the story.
Verizon to acquire internet pioneer YahooYahoo's days as an independent company are almost over - the company's core business has just been sold to telecom giant Verizon for $4.8 billion in cash. This marks the end of an era for a company once valued around $140 billion at its peak. CCTV America’s Karina Huber reported the story.
With this acquisition and last year’s purchase of Yahoo competitor AOL, Verizon gets a whole list of digital properties including Huffington Post, Yahoo sports and Yahoo mail.
According to eMarketer, Google and Facebook have more than half the projected $69 billion U.S. digital advertising market. Yahoo has under 3.5 percent of market share and AOL has even less.
“Investors as of right now should really start thinking of themselves as only Alibaba if they own Yahoo. Because the Yahoo Japan stake is relatively small so you really have cash and an Alibaba tracker at this point,” said John Addis, CIO of Fourworld Capital.
Yahoo reportedly intends to distribute a substantial portion of its cash to shareholders.
The deal still needs to be approved by shareholders and regulators but Mayer stands to gain more than $50 million in severance if she is ousted. That along with what she’s already been paid in cash and stock would leave her with a paycheck topping $200 million.
Ari Zoldan on Verizon-Yahoo Deal
For more information about Verizon and Yahoo Deal, CCTV America’s Rachelle Akuffo interviewed Ari Zoldan, CEO of Quantum Networks, LLC.