Verizon-Yahoo Stock Purchase Agreement: What you need to know
Verizon Communications Inc. recently announced that it has completed the acquisition of Yahoo! Inc.’s operating business for $4.5 billion. This purchase is expected to bring significant expansion to Verizon’s Internet, mobile and advertising businesses. Here`s what you need to know about the Verizon-Yahoo stock purchase agreement:
Background
Yahoo! Inc. was one of the pioneers of the internet industry since its inception in 1994. It was once a dominant player in the search and email market. However, as time passed, Yahoo! started losing its market share to its competitors.
In July 2016, Verizon Communications Inc. announced that it would acquire Yahoo’s core internet operations for $4.83 billion. However, the deal was renegotiated after Yahoo! disclosed two major data breaches compromising over 500 million user accounts.
What Does the Deal Include?
Under the terms of the deal, Verizon has acquired Yahoo`s online assets, including its email service, search engine, mobile apps, advertising platforms, and content network. Yahoo`s stakes in Alibaba Group Holding Ltd. and Yahoo Japan were not included in the deal but will remain under the ownership of Yahoo! Inc.
Implications for Yahoo!
Following the acquisition, Yahoo! Inc. officially changed its name to Altaba Inc. and has transformed itself into an investment company that holds stakes in Alibaba and Yahoo Japan. The company no longer has a CEO, and its management and board structure have been reconfigured.
Implications for Verizon
The acquisition will significantly expand Verizon`s digital advertising capabilities, giving it access to Yahoo`s advertising technology, data, and content network. It has also increased Verizon`s customer base, as Yahoo! had around one billion monthly active users worldwide.
Verizon plans to merge Yahoo`s advertising technology with its own AOL advertising unit to create a single advertising platform called Oath. This platform aims to compete with Google and Facebook in the digital advertising market.
Implications for Users
The acquisition will not have any immediate implications for Yahoo! users. Yahoo! email accounts will remain active, and the company`s search engine and other services will continue to operate as before. However, some changes are expected in the long term, as Verizon may choose to integrate Yahoo`s services with its own digital properties.
Final Thoughts
The Verizon-Yahoo stock purchase agreement has been one of the most talked-about deals in the tech industry. It has marked the end of an era for Yahoo!, which was once a dominant player in the internet landscape. For Verizon, the acquisition has brought significant expansion to its digital advertising business, as well as a substantial increase in its customer base.
Overall, the acquisition is expected to strengthen Verizon`s position as a leading player in the digital advertising market. Only time will tell if Verizon`s proposed “Oath” platform can compete with Google and Facebook in the advertising industry.
Recent Comments