Verizon agrees to buy core of Yahoo for reduced $4.48B price tag following hacks
Verizon on Tuesday announced a deal to buy the core business of Yahoo for $4.48 billion -- managing to secure a $350 million discount it was pursuing because of two major security breaches, the last of which affected over 1 billion accounts.
![](https://apple.insidercdn.com/gallery/20286-21815-yahoo-logo-l.jpg)
Under the terms of the deal Yahoo and Verizon will share some liabilities surrounding the hacks, which took place in 2013 and 2014, according to Reuters. Specifically, the companies will split cash liabilities linked to some lawsuits and government investigations, but Yahoo alone will be saddled with some liabilities from shareholder lawsuits and U.S. Securities and Exchange Commission investigations.
The acquistion should close in the second quarter, pending government approval.
Though best known as a wireless provider, Verizon also owns AOL, and taking over Yahoo will not only give it a new userbase but data it can apply for targeted ads. The company is expected to merge Yahoo's ad tech, email, search, and messenger assets with AOL.
Once a giant in the internet world, in recent years Yahoo has been beleaguered not just by security issues but by difficulty remaining relevant in an industry populated by the likes of Apple, Google, and Facebook.
Last year Verizon's main rival in the wireless space, AT&T, announced plans to merge with Time Warner in a deal worth over $85 billion. That has yet to be approved, and faces some opposition given worries about dwindling competition in U.S. media and communications.
![](https://apple.insidercdn.com/gallery/20286-21815-yahoo-logo-l.jpg)
Under the terms of the deal Yahoo and Verizon will share some liabilities surrounding the hacks, which took place in 2013 and 2014, according to Reuters. Specifically, the companies will split cash liabilities linked to some lawsuits and government investigations, but Yahoo alone will be saddled with some liabilities from shareholder lawsuits and U.S. Securities and Exchange Commission investigations.
The acquistion should close in the second quarter, pending government approval.
Though best known as a wireless provider, Verizon also owns AOL, and taking over Yahoo will not only give it a new userbase but data it can apply for targeted ads. The company is expected to merge Yahoo's ad tech, email, search, and messenger assets with AOL.
Once a giant in the internet world, in recent years Yahoo has been beleaguered not just by security issues but by difficulty remaining relevant in an industry populated by the likes of Apple, Google, and Facebook.
Last year Verizon's main rival in the wireless space, AT&T, announced plans to merge with Time Warner in a deal worth over $85 billion. That has yet to be approved, and faces some opposition given worries about dwindling competition in U.S. media and communications.
Comments
Yeah, the web email part (the original part) is worth peanuts, it's their other properties that are of interest. BTW, my main email is still yahoo and I've had it since 1998... Eventually this will likely be resold for peanuts to MS, Google or Facebook or whatever.
My father-in-law is still upset Yahoo Finance stopped accepting new Portfolio input. He used it all the time and I have had to find a new way and teach him (not an easy task for a 90 year old retired stock broker).
They'll approve the merger within the current framework and find a bullshit reasoning for it.
If you are going to buy a company, perhaps you should consider buying one that makes money. If Yahoo can't make money with their core business, what makes a completely unrelated business think they can turn a profit with it. As I always say, when any company, not sports related, puts their name on a stadium, it is time to sell the stock. They have two of them and the stock is down close to a one year low when the rest of the market is at all time highs.
This Yahoo deal looks like an ego driven transaction. They want to be in the search business because, well, it's cool to be like Google.
edit* nevermind, I see AOL bought it for $4.8b way back when, so Verizon already have it!