Thursday , 23 January 2020
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Telecoms giant Verizon acquires Yahoo for $4.48bn – Verdict

Telecoms giant Verizon acquires Yahoo for $4.48bn – Verdict

American telecommunications company Verizon closed its $4.48bn purchase of Yahoo’s core business on Tuesday.

The original purchase price of $4.8bn announced last summer was slashed by $350m after a series of serious data breaches at Yahoo significantly reduced the company’s value.

Yahoo’s chief executive Marissa Mayer’s resignation after five years at the company’s helm coincides with the Verizon acquisition.

“Given the inherent changes to Marissa Mayer’s role with Yahoo resulting from the closing of the transaction, Mayer has chosen to resign from Yahoo,” Verizon said in a statement on Tuesday. “Verizon wishes Mayer well in her future endeavors.”

The deal firmly establishes Verizon as a global digital-media powerhouse, and Yahoo’s struggle to compete with web giants such as Google and Facebook.

“Yahoo’s imprint and impact on the valley will long outlive its own history,” said Carl Guardino, chief executive of the Silicon Valley Leadership Group,which represents more than 400 of Silicon Valley’s employers. “For so many years, [its] creative culture and the individual leaders left an indelible mark on the valley.”

Some of Yahoo’s online offerings were reasonably successful, particularly Yahoo Finance, the provider of market data.  Yahoo Sports also attracted a high level of online traffic.

“They were a major provider of job creation in their heyday,” said San Jose analyst Tim Bajarin of Creative Strategies.

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