Finally, Verizon’s long-expected deal to acquire Yahoo’s core Internet assets became reality this week. Verizon's aquisition of internet giant, Yahoo's operating business for approximately $4.83 billion in cash sets its foot deeper into massive content network and digital advertising business. The deal is expected to help Verizon to compete with the likes of Google and Facebook in these business segments.
Yahoo will be integrated under Verizon's media outfit AOL, the company it bought last year for $4.4bn. Verizon via AOL has made major investments in global content network and web advertising platforms, including investments in global premium content network brands such as The Huffington Post, TechCrunch, Engadget and MAKERS. With Yahoo, Verizon will be onboarding key assets including market-leading premium content brands in major categories covering finance, news and sports, as well as its popular email services that boasts approximately 225 million monthly active users.
Both the acquisitions will also be beefing up Verizon's digital advertising portfolio. AOL owns AOL.com, and market-leading programmatic platforms -- including one for both advertisers and publishers. Yahoo meanwhile brings additional technology assets in this space featuring major brands such as Brightroll, a programmatic demand-side platform; Flurry, an independent mobile apps analytics service; and Gemini, a native and search advertising solution.
The combined assets of AOL and Yahoo will see a line up of more than 25 brands in Verizon's portfolio for continued investment and growth. In its statement, Verizon said that the acquisition will create a new powerful competitive rival in mobile media, and an open, scaled alternative offering for advertisers and publishers. The sale, however does not include Yahoo's cash, its shares in Alibaba Group Holdings and its shares in Yahoo Japan.
Lowell McAdams, Chairman and CEO, Verizon
Just over a year ago we acquired AOL to enhance our strategy of providing a cross-screen connection for consumers, creators and advertisers. The acquisition of Yahoo will put Verizon in a highly competitive position as a top global mobile media company, and help accelerate our revenue stream in digital advertising.
Marissa Mayer, CEO of Yahoo
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.
