tech2 News StaffJul 25, 2016 16:56:37 IST
Verizon today confirmed a $4.83 billion buyout of online pioneer Yahoo, marking end of an era for company that once defined the internet.
After a long silence from both firms, Verizon Communications Inc has confirmed that it has bought over Yahoo Inc. There were plenty of reports floating about the company's persistence of acquiring Yahoo and as expected Verizon confirmed the same. Sources close to the matter, have revealed that Verizon had recently won the bidding process but that the announcement would be made official when the markets opened on Monday.
According to many, the deal would boost Verizon’s AOL internet business, which the company acquired last year for $4.4 billion. It would give Verizon access to Yahoo’s advertising technology tools, as well other assets such as search, mail, messenger and real estate. These synergies have made Verizon the favorite among industry analysts to prevail in the auction.
Sadly, the sale would also mark the end of Yahoo as an operating company. Yahoo will be the owner of a 35.5 percent stake in Yahoo Japan, as well as its 15 percent interest in Chinese e-commerce company Alibaba Group Holding Ltd. Those two stakes account for most of Yahoo’s $37 billion market capitalization.
Prior to Verizon, Microsoft had a genuine interest in acquiring Yahoo. Its finally offer of $44 billion 2008 was turned down with Yahoo stating that it was“substantially undervaluing”.
With inputs from Associated Press
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