US communications giant Verizon looks beyond telecoms, agrees to buy Yahoo for $4,83 billion

Nigel Gambanga Avatar
Yahoo, Search Engines

Verizon, the United States telecoms company has entered into an agreement with Yahoo to buy the web and search company for $4,83 billion.

The deal only covers Yahoo’s core internet business and some real estate and does not include Yahoo’s cash, its shares in Alibaba Group Holding Ltd., its shares in Yahoo Japan, and Yahoo’s noncore patents under a portfolio called Excalibur.

The stakes in Alibaba and Yahoo Japan, worth approximately $40 billion, have been the most valuable aspect of Yahoo and will continue to be held by the company which is expected to change its name and become a registered, publicly traded investment company.

Yahoo’s acquisition comes after Verizon snapped up AOL over a year ago as part of a strategy to create what Lowell McAdam the Verizon CEO called “cross-screen connection for consumers, creators and advertisers.”

Verizon is expected to maintain the core features of Yahoo and gear it for competition with Google and Facebook in the digital advertising space through access to users on its niche specific sites.

This is part of the Verizon’s plan to extend revenue prospects as the telecoms and broadband space plateaus. 

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