Verizon Plans on Acquiring Yahoo for $4.83 billion
Posted by: Timothy Weaver on 07/26/2016 06:25 AM
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Verizon has completed a deal to buy Yahoo for $4.83 billion.
Verizon bought AOL last year for $4.4 billion. AOL CEO Tim Armstrong said in a written statement: "We have enormous respect for what Yahoo has accomplished: this transaction is about unleashing Yahoo's full potential."
CEO Marissa Mayer of Yahoo, who expects to continue on running Yahoo, said about the takeover: "I love Yahoo, and I believe in all of you. It's important to me to see Yahoo into its next chapter."
Yahoo was once valued at $130 billion but has seen a drastic downturn over the last eight years. The sale could see a large amount of employee layoffs, even after Mayer trimmed the personnel by 1,900 Yahoo workers since last September.
Mayer is expected to receive a severance package that is estimated at $55 million.
Verizon’s plan is to capitalize on the smartphone market. It is now looking to control more of the advertising on phones. However, if Verizon had acquired Yahoo this year, it would be seeing about $3.6 billion in U.S. ad revenue. Compare that to Google and Facebook that gross $27 billion for Google and Facebook's projected $10 billion.
The company is hoping to have a mobile audience of 2 billion people by 2020, with a goal of $20 billion in mobile revenue by that time.
The deal is expected to culminate in early 2017 if Verizon gets approval from Yahoo's shareholders.
Source: Windstream.net
Verizon bought AOL last year for $4.4 billion. AOL CEO Tim Armstrong said in a written statement: "We have enormous respect for what Yahoo has accomplished: this transaction is about unleashing Yahoo's full potential."CEO Marissa Mayer of Yahoo, who expects to continue on running Yahoo, said about the takeover: "I love Yahoo, and I believe in all of you. It's important to me to see Yahoo into its next chapter."
Yahoo was once valued at $130 billion but has seen a drastic downturn over the last eight years. The sale could see a large amount of employee layoffs, even after Mayer trimmed the personnel by 1,900 Yahoo workers since last September.
Mayer is expected to receive a severance package that is estimated at $55 million.
Verizon’s plan is to capitalize on the smartphone market. It is now looking to control more of the advertising on phones. However, if Verizon had acquired Yahoo this year, it would be seeing about $3.6 billion in U.S. ad revenue. Compare that to Google and Facebook that gross $27 billion for Google and Facebook's projected $10 billion.
The company is hoping to have a mobile audience of 2 billion people by 2020, with a goal of $20 billion in mobile revenue by that time.
The deal is expected to culminate in early 2017 if Verizon gets approval from Yahoo's shareholders.
Source: Windstream.net
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