Verizon takes over Yahoo to complete $4.5 billion deal

by Edgar Hayes June 14, 2017, 2:23
Verizon takes over Yahoo to complete $4.5 billion deal

Verizon Communications announced Tuesday it had completed its $4.5 billion acquisition of Yahoo's core internet assets.

Despite the divorce of Mayer and Yahoo, her departure was somewhat expected as a part of this deal.

Tim Armstrong, who had run AOL, now is Oath's CEO reporting to Walden.

The deal ends Yahoo as an operating company and leaves it with its stake in Chinese e-commerce company Alibaba (NYSE: BABA) and Yahoo Japan, its cash, convertible notes, certain minority investments, and a noncore portfolio of patents called Excalibur.

Mayer's exit has always been suspected. In it, Mayer thanks Yahoo employees and lists various accomplishments in which she says Yahoo's team "rebuilt, reinvented, strengthened, and modernized" the company and its products.

Ultimately, the US government charged four individuals in connection with the 2014 hack - two employees of the Russia's FSB state security service as well as two men who allegedly worked for the FSB.

The company had been struggling for years due to mistakes made by former CEOs Terry Semel and Carol Bartz.

The fate for a number of former Yahoo employees remains deeply uncertain, with thousands of people potentially being laid off.

Verizon purchased AOL in 2015.

Verizon first announced plans to buy Yahoo's core internet assets nearly a year ago.

Although Mayer's fate under Verizon was uncertain, her resignation was a frequently predicted outcome.

For the majority of its existence, however, Yahoo struggled to find relevance.

The company had found it hard to compete with newcomers like Google and Facebook in the battle for online advertising.

Early on, Mayer signaled changes aimed at doubling down on Yahoo's successes and appealing to new markets.

The decision to buy blogging/social media site Tumblr for $1 billion didn't pan out for Mayer and Yahoo. Tumblr, in particular, enabled Yahoo to target younger users.

But Yahoo's ad revenue has been falling for most of the last decade.

Neither did Mayer's attempts to focus Yahoo more on mobile and social media. The fallout from the digital intrusions forced Yahoo to give Verizon a $350 million discount on the initial sale terms reached last July, causing the deal to be delayed by several months.

TOP News

Upton's slam helps Tigers avert sweep; win 8-3 over BoSox

Church school 'lockdown' as nursery worker slashed

'Bachelor in Paradise' suspended amid alleged misconduct

'Batman' star Adam West dies at 88

E3 2017: Need For Speed Payback Zooming To Retailers November 10

Crosby scores, Malkin shoots yet Penguins lose 4-1 to Preds

Iran leaders accuse US, Saudis of supporting Tehran attacks

How Draymond Green Helped Make Kevin Durant's Move to Golden State Happen

Iran supreme leader: Attacks fuel hatred toward US, Saudis

Select list of winners of the 2017 Tony Awards