The largest phone company US looking with this acquisition compete with Google and Facebook
NEW YORK The US telecoms group Verizon today closed the purchase of Yahoo web business for a price of 4830 million. For the first time in 20 years, the company knew pioneering Internet will no longer be independent.
This is the second time in two years that Verizon acquired the remains of an Internet star off in a attempt to expand its digital reach and compete for online advertising with Facebook and Google. The company’s largest US phone 4,400 million paid last year by AOL, another company that had its glory years.
Verizon managed to buy Yahoo after an auction of five months. The deal, pending regulatory approval, is expected to close in the first quarter of 2017, the companies said in a joint press release.
“The Yahoo group has changed the world and will continue making through its partnership with Verizon and AOL, “said the CEO of Yahoo !, Marissa Mayer.
Verizon CEO Lowell McAdam said in the statement that the activities of Yahoo! integrated into the same division as those of AOL, in order to create “an international media group first order and help accelerate our revenue from online advertising.”
the operation was confirmed several days later that various leaks realize that Verizon was alone in the final efforts to buy Yahoo.
Yahoo was founded in 1994 and went on to become the main engine of Internet search, but his downfall began when he had to start competing with Google, currently the second largest company by market capitalization in the United States. In recent years, he was under pressure from shareholders, tired of the drop in company profits the last eight years.
How will continue to operate Yahoo
Until it is regulated agreement, which is expected to be in the first quarter of 2017, Yahoo will continue to operate independently.
Then stop being an operating company. It will keep 35.5 percent of Yahoo Japan and 15 percent of the Chinese group Alibaba. These two units account for the majority of the 37 billion dollars of capitalization of the company.
The sale does not include cash Yahoo, convertible notes Yahoo, certain minority investments and non-core patents Yahoo.
“the sale of our operating business, which effectively separates our holdings of Asian assets, is an important step in our plan to add shareholder value by Yahoo step,” said Chief executive deYahoo Marissa Mayer said in a statement .
Who is Verizon
it is one of the largest wireless providers in the US market, known for its telecommunications services. Yahoo acquisition adds another similar purchase, when Verizon a year ago stayed with AOL for 4.4 billion dollars.
Far from the glow that used to have before the crisis bubble puntcom, AOL managed retrieve the appeal under the direction of Tim Armstrong, a former Google, if you have made strategic moves of recovery as a system of choice for advertisers by auction proven.
Meanwhile, Yahoo tried in the past years a change of direction to the direction of the company founded in 1994 by David Filo and Jerry Yang. Used to be the favorite search engine users fledgling Web, until it burst Google with its search algorithm. In 2008, Microsoft offered 44,600 million to stay with Yahoo !, but shareholders rejected the offer when the company was run by Carol Bartz.
Then Yahoo came under the command of Marissa Mayer , Google employee number 20, with enough to try to twist the downward curve of the company scrolls. It acquired Tumblr for 1.1 billion dollars, among many other purchases and transformations, but the digital division failed to set straight, until it was acquired by Verizon in 4800 million, a figure lower than that bid Microsoft for eight years.
Verizon’s goal is to diversify into digital content for different media. It is a commitment to compete directly with companies like Netflix, Hulu, Amazon, Google and even Facebook
Agencies EFE, AFP, DPA, AP, Reuters
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