Verizon Acquires Yahoo’s Core Business For £3.86 Billion

Yahoo has finally sold off its problem-addled internet business to buyer Verizon for $4.83 billion (£3.86bn), 16 years after Yahoo grabbed headlines during the dot-com bubble in 2000 with a market capitalisation of $125 billion.

The all-cash deal is expected to close in the first quarter of 2017, and does not include Yahoo’s cash, its shares in Alibaba Group Holdings, its shares in Yahoo Japan, and Yahoo’s non-core patents (called the Excalibur portfolio).


Verizon’s purchase comes a year after it bought up AOL to boost its consumer and advertising business, and it hopes the acquisition of Yahoo’s assets will “put Verizon in a highly competitive position as a top global mobile media company”.

“Yahoo is a company that has changed the world, and will continue to do so through this combination with Verizon and AOL,” said Yahoo boss Marissa Mayer.

“The sale of our operating business, which effectively separates our Asian asset equity stakes, is an important step in our plan to unlock shareholder value for Yahoo. This transaction also sets up a great opportunity for Yahoo to build further distribution and accelerate our work in mobile, video, native advertising and social.

‘Popularised’ the internet

“Yahoo and AOL popularised 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 (£1.2bn) in GAAP revenue in 2015. I’m excited to extend our momentum through this transaction,” she added.

By the date the deal closes, Verizon will boast a significant portfolio of owned and partnered global brands. With Yahoo’s core business, the company gets hold of Yahoo’s finance, news and sports channels, along with the Yahoo email services. Other assets included in the sale are Yahoo’s Brightroll, a programmatic demand-side platform; Flurry, an independent mobile apps analytics service; and Gemini, a native and search advertising product.

Yahoo will be integrated with AOL under Marni Walden, EVP and President of the Product Innovation and New Businesses organisation at Verizon.

Take our cybersecurity quiz here!

Ben Sullivan

Ben covers web and technology giants such as Google, Amazon, and Microsoft and their impact on the cloud computing industry, whilst also writing about data centre players and their increasing importance in Europe. He also covers future technologies such as drones, aerospace, science, and the effect of technology on the environment.

Recent Posts

UK’s CMA Begins Probe Of Viasat Acquisition Of Inmarsat

British competition regulator the CMA, begins phase one investigation of $7.3 billion merger between Inmarsat…

8 hours ago

Cisco Admits ‘Security Incident’ After Breach Of Corporate Network

Yanluowang ransomware hackers claim credit for compromise of Cisco's corporate network in May, while Cisco…

10 hours ago

Google Seeks To Shame Apple Over RCS Refusal

Good luck convincing Tim. Google begins publicity campaign to pressure Aple into adopting the cross…

11 hours ago

Elon Musk Wants Staff Names Of Twitter’s Bot Counters

Fight with Twitter, sees Elon Musk's legal team requesting names of those employees who calculate…

12 hours ago

Former Twitter Executive Convicted Of Spying For Saudi Arabia

Spying scandal. Former Twitter executive found guilty in San Francisco courtroom of spying for Saudi…

16 hours ago

Meta Raises $10 Billion In Bond Offering

First ever bond offering sees Facebook parent Meta Platforms raise $10 billion, as it seeks…

17 hours ago