Yahoo! the company that once defined the Internet has been sold for just $4.83 billion. America’s largest telecommunication company Verizon has decided to acquire the core Internet business of Yahoo.
This deal is a result of month long negotiations that will finally end the uncertainty of Yahoo’s future. Verizon, which also took over AOL last year for $4.4 billion wants to merge both business. Interestingly they also want to keep Marissa Mayer the current CEO of Yahoo, despite her four years of failure.
The deal won’t include Yahoo’s stakes in Alibaba Group and Yahoo Japan, which are worth more than $40 billion. However Verizon is buying all of Yahoo’s real estate, along with the online operations. Yahoo also still has a patent portfolio that it intends to sell, and about $7.7 billion in cash.
Verizon will get much benefit from this acquisition, by gaining access and capitalizing Yahoo’s advertising technology tools, including other services like search, mail, messenger, and real estate it can generate profits in billions every year.
It merits mentioning, that not so long ago, Microsoft offered around $45 billion to take over Yahoo, but it was rejected because people at Yahoo thought it was much less than the market worth.