Verizon has plunked down nearly $5 BILLION dollars for Yahoo!, which many people think is a bargain, considering Yahoo! was once a company that defined the web…before that pesky Google came along. Former Google exec, and current Yahoo! Chief Executive Marissa Mayer said in a statement today what the $4.83 billion dollar deal means for the company:
“The sale of our operating business, which effectively separates our Asian asset equity stakes, is an important step in our plan to unlock shareholder value for Yahoo.”
Why would Verizon be willing to pony up that kind of cash for the fledgling internet giant? According to Reuters, here is where part of Verizon‘s interest lies:
“Buying Yahoo’s operations will boost Verizon’s AOL internet business, which it bought last year for $4.4 billion, by giving it access to Yahoo’s advertising technology tools as well as other assets such as search, mail and messenger.”
Yahoo! will get to keep their 15% stake in Alibaba, which is similar to China’s version of Amazon, and their 35% stake in Yahoo! Japan, but this will effectively end their day to day business operations, as Verizon takes over.
ESPN‘s Darren Rovell had some interesting insight into just how much the value of Yahoo! has fallen: