Verizon Acquires Yahoo for $4.83 Billion

Jul 25, 2016

Verizon Communications Inc. and Yahoo! Inc. announced they have entered into a definitive agreement under which Verizon will acquire Yahoo's operating business for approximately $4.83 billion in cash, subject to customary closing. That hefty price tag will give Verizon Yahoo's advertising, content, search, and mobile business, but not its stakes in Alibaba and Yahoo Japan. 

According to the statement on Verizon's website, Lowell McAdam, Verizon chairman and CEO. says, "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."

Verizon says Yahoo will be integrated with AOL under Marni Walden, EVP and president of the product innovation and new businesses organization at Verizon. The combination of AOL and Yahoo will give Verison more than 25 brands in its portfolio, giving potential advertisers plenty of choice throughout its integrated content network.

"Marketers are clearly voting for Google and Facebook with their wallets, but the rise of a credible third player with 'one-stop' access to an engaged audience should be core to the approach of this combined entity that now marries Yahoo! Finance with HuffPo," says chairman and CEO of PebblePostLewis Gersh.

The acquisition will give advertisers a vast array of brands to choose from, and an enormous audience--however, it is also Verizon's next step away from being just a telecomms giant, and toward diversifying its media portfolio. Ultimately, Verizon wants to compete with Facebook and Google for you attention, so that you'll be reading its content and seeing its ads, over the network it provides.