Verizon Acquired Yahoo, But That's Not All for Verizon

By siliconindia | Thursday, 28 July 2016, 06:11 Hrs

BENGALURU: Entered into a definitive agreement, Verizon Communications has finally acquired Yahoo’s operating business—July 25, 2016—for approximately $4.83 billion in cash on. Yahoo CEO Marissa Mayer confirms that it connects and entertains more than 1 billion monthly active global audience.

Following the acquisition, the Verizon is authorized to access Yahoo’s advertising technology tools such as BrightRoll and Flurry, assets such as Search, Mail, Messenger as well as real estate. The deal will get closed completely by early 2017.

Marissa Mayer, most likely, would not be joining Verizon and will receive a package of $57 million for her severance, according to compensation research firm Equilar, quoted in the New York Times. The merger is expected to create one of the largest portfolios of owned and partnered global brands with extended distribution potentialities. AOL and Yahoo, united, will have more than 25 brands in their portfolio as a scope of nonstop investment and growth.

The sale or the deal does not include Yahoo’s cash, its shares in Alibaba Group Holdings (Yahoo still owns 15 percent of Alibaba Group Holdings.), its shares in Yahoo Japan, Yahoo’s convertible notes, certain minority investments, and Yahoo’s non-core patents (called the Excalibur portfolio). Post Alibaba going public, Yahoo’s 15 percent holdings worth $31 billion will still remain with Yahoo.

Yahoo Japan Corp— formed as a joint venture between Yahoo and Softbank—in which Yahoo own a 35.5 percent stake, is also not a part of the deal. Set up in 1996, Yahoo Japan Corporation is Japanese Internet Company, which is its biggest shareholder. Yahoo Japan is one of the most popular sites in Japan and operates severally of Yahoo.

These assets will continue to be held by Yahoo, which but the company will have to change its name at closing and become a registered, publicly traded investment company.