Yahoo Confirms $4.83 Billion Sale Of Failed Internet Business To Verizon
Business is good over at Verizon. So good, in fact, that the nation's largest wireless carrier announced that it's entered into a definitive agreement to purchase Yahoo for approximately $4.83 billion in cash, the company confirmed this morning. Around this time a year ago, Verizon was closing its acquisition of AOL for $4.4 billion.
"Just over a year ago we acquired AOL to enhance our strategy of providing a cross-screen connection for consumers, creators and advertisers. The acquisition of Yahoo will put Verizon in a highly competitive position as a top global mobile media company, and help accelerate our revenue stream in digital advertising," said Lowell McAdam, Verizon Chairman and CEO.
Verizon plans to merge Yahoo with AOL under Marni Walden, Executive Vice President and President of the Product Innovation and New Businesses organization at Verizon. By adding Yahoo to AOL, Verizon's portfolio of partnered global brands balloons to over two dozen. It also gains one of the most popular email services with there being in the neighborhood of 225 million monthly active Yahoo Mail users.
While many will view this as a failure of Yahoo and ultimately its CEO Marissa Mayer to turn things around, Mayer put a positive spin on the acquisition, calling it a "poetic" merger that will extend the company's momentum.
"Yahoo and AOL popularized the Internet, email, search and real-time media. It’s poetic to be joining forces with AOL and Verizon as we enter our next chapter focused on achieving scale on mobile. We have a terrific, loyal, experienced and quality team, and I couldn’t be prouder of our achievements to date, including building our new lines of business to $1.6 billion in GAAP revenue in 2015. I’m excited to extend our momentum through this transaction," Mayer said.
This is a big move by Verizon, one that will bring in more mobile revenue through the digital ad market. Yahoo is home to more than 1 billion monthly active users, 600 million of which are mobile users. It doesn't matter if they connect through Verizon or through one of its competitors, the digital ad revenue generated from their use of Yahoo's various services will now funnel into Verizon.
"Just over a year ago we acquired AOL to enhance our strategy of providing a cross-screen connection for consumers, creators and advertisers. The acquisition of Yahoo will put Verizon in a highly competitive position as a top global mobile media company, and help accelerate our revenue stream in digital advertising," said Lowell McAdam, Verizon Chairman and CEO.
Verizon plans to merge Yahoo with AOL under Marni Walden, Executive Vice President and President of the Product Innovation and New Businesses organization at Verizon. By adding Yahoo to AOL, Verizon's portfolio of partnered global brands balloons to over two dozen. It also gains one of the most popular email services with there being in the neighborhood of 225 million monthly active Yahoo Mail users.
While many will view this as a failure of Yahoo and ultimately its CEO Marissa Mayer to turn things around, Mayer put a positive spin on the acquisition, calling it a "poetic" merger that will extend the company's momentum.
"Yahoo and AOL popularized the Internet, email, search and real-time media. It’s poetic to be joining forces with AOL and Verizon as we enter our next chapter focused on achieving scale on mobile. We have a terrific, loyal, experienced and quality team, and I couldn’t be prouder of our achievements to date, including building our new lines of business to $1.6 billion in GAAP revenue in 2015. I’m excited to extend our momentum through this transaction," Mayer said.
This is a big move by Verizon, one that will bring in more mobile revenue through the digital ad market. Yahoo is home to more than 1 billion monthly active users, 600 million of which are mobile users. It doesn't matter if they connect through Verizon or through one of its competitors, the digital ad revenue generated from their use of Yahoo's various services will now funnel into Verizon.
