People/Biz

Verizon acquires Yahoo in US$4.8 billion deal

The American telco giant has purchased the pioneering web brand and will combine it with AOL. (Pictured: Yahoo CEO Marissa Mayer)
July 25, 2016

U.S. telco giant Verizon has acquired tech company and pioneering web brand Yahoo for US$4.83 billion.

The deal, confirmed by both parties in advance of the financial markets opening for the day, will see Verizon take Yahoo’s core Internet assets and land assets, while the company’s shareholders retains stakes in Chinese e-commerce company Alibaba, Yahoo Japan, and assorted patents.

Verizon will merge Yahoo with AOL, which it purchased last year for approximately $4.4 billion.
Recently, Verizon has been making more plays in the mobile video space with its ad-supported streaming platform, Go90, and recently hired former YouTube exec Ivana Kirkbride as content chief for the service.

Yahoo’s forays into content, meanwhile, have scaled back over the last year, with its on-demand streaming service, Yahoo Screen, signing off in January of this year.

Yahoo CEO Marissa Mayer (pictured) said in an email to staff posted on her Tumblr that she is “planning to stay” and that it is “important to me to see Yahoo into its next chapter,” but it is unclear as to whether she would be staying beyond the transition. Brands that will now fall under Verizon’s combined AOL/Yahoo umbrella include The Huffington Post, Tumblr and Techcrunch.

About The Author
Selina Chignall joins the realscreen team as a staff writer. Prior to working with rs, she covered lobbying activity at Hill Times Publishing. She also spent a year covering the Hill as a journalist with iPolitics. Her beat focused on youth, education, democratic reform, innovation and infrastructure. She holds a Master of Arts in Journalism from Western University and a Honours Bachelor of Arts from the University of Toronto.

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