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Yahoo Sells Web Business to Verizon for $4.8 Billion

Yahoo Sells Web Business to Verizon for $4.8 Billion

Internet Service Provider Verizon is acquiring Yahoo’s core businesses for $4.8 billion. For Verizon, the acquisition will help it gain Yahoo’s 1 billion monthly active users, its internet properties and key applications like search and email, and its advertising systems. It will also be Verizon’s second acquisition and integration of a web company, having acquired similar assets when it purchased AOL for $4.4 billion in 2015. The transaction is expected to be completed by the first quarter of next year, subject to regulatory approvals, ending a long-drawn out bidding process for the company. After the transaction is closed, Yahoo will be integrated with AOL under Marni Walden, Verizon’s executive vice president and president of the Product Innovation and New Businesses organization, the communications company said Monday.

The price Verizon is paying for Yahoo’s internet assets is a small percentage of the web company’s market capitalization of over $125 billion during the peak of the dot-com boom, reflecting how badly the company has fallen out of favor.Founded in 1994 by Jerry Yang and David Filo, Yahoo soon emerged as the entry point to the web for legions of users, who flocked to its portal, search engine, and email services. and more. But it was later overtaken in markets like search by newer competitors like Google. The company also failed to rise up to new market opportunities such as social networking and mobile.