Verizon Acquires Yahoo

Yahoo

CBJ — Yahoo is being acquired by American telecom giant Verizon Communications for almost $5 billion in cash.

Yahoo will be combined with AOL, another faded internet star, which Verizon bought last year.

The deal does not include Yahoo’s valuable stake in Chinese firm Alibaba.

The price tag for the deal is well below the $44 billion Microsoft offered for Yahoo in 2008 or the $125 billion it was worth during the dot.com boom.

Verizon said the deal for Yahaoo’s core internet business, which has more than a billion active users a month, would make it a global mobile media company.

Marissa Mayer, chief executive of Yahoo, said: “Yahoo is a company that has changed the world, and will continue to do so through this combination with Verizon and AOL.”

In an email to staff, Mayer said she was planning to stay. Whether her new bosses feel the same way remains to be seen.

@CanBizJournal

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