Last year, details surfaced regarding a Verizon buyout of Yahoo. Since then, a great deal of news concerning Yahoo’s incredibly serious data breaches did even more damage to the struggling outfit, possibly jeopardizing the deal. However, as outlets like TechCrunch have noted, Verizon is moving beyond Yahoo’s bad press and has revealed plans to go forward with its acquisition of the onetime media giant. Finalizing the sale, Verizon and Yahoo have agreed to lower the original price tag by $350 million USD, allowing the telecommunications and mass media empire to pick up Yahoo for $4.48 billion. Along with the amended sale, the two companies have also come to a resolution regarding “legal and regulatory liabilities” for the breaches, agreeing to share the burden.
Verizon’s Yahoo purchase will be finalized in the second quarter of this year, placing Yahoo’s search platform, media network, email service and mobile apps under the Verizon banner. “Adding Yahoo to Verizon and AOL will create one of the largest portfolios of owned and partnered global brands, with extensive technology-powered distribution capabilities. It will enhance Verizon’s growth strategy of providing a cross-screen connection for consumers, creators and advertisers,” reads an official corporate press statement from Verizon.
“This transaction will accelerate Yahoo’s operating business especially on mobile, while effectively separating our Asian asset equity stakes. It is an important step to unlock shareholder value for Yahoo, and we can now move forward with confidence and certainty. We have a terrific, loyal, experienced team at Yahoo. I’m incredibly proud of our team’s strong product and financial execution in 2016, setting the stage for a successful integration,” shared Yahoo CEO Marissa Mayer.
- David Paul Morris / Bloomberg
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