Published By : 14 Jun 2017 | Published By : QYRESEARCH
After announcing to take over Yahoo, Verizon finally completed its acquisition of Yahoo at US$4.48 billion. Marissa Mayer stepped down after the final completion of the acquisition leaving Yahoo no longer independent. The assets such as Yahoo finance will be amalgamated with AOL. The former CEO of AOL has been reported to be heading the subsidiary, housing over 50 technology and media brands. Mayer is anticipated to be receiving a Herculean payment of over US$23 million. After Version announced to take over Yahoo’s core internet market last year in July, Yahoo unveiled that two data breaches had occurred in 2013 and 2014, impacting more than 1 billion accounts.
Previously, the final price of acquisition was set to be US$350 million less than the actual offer of US$4.8 billion. But after several months of uncertainty, the deal finally closed at US$4.48 billion with Verizon acquiring the core internet assets of Yahoo. The deal put an end to Yahoo as an independent operating company and leaves it with the stake in Yahoo Japan and Alibaba and its minority investments, convertible notes, cash, and noncore patents portfolio known as Excalibur.
It has been reported that Verizon expected to cut over 2,100 employees or around 15% of the total number of employees in the combined venture. Whatever remains of the original Yahoo will be renamed as Altaba Inc. It will be serving as a holding company for Yahoo’s biggest stake in Alibab namely BABA and Tech30.
Even after Mayer’s struggle to bring back Yahoo from the dead, she could not save the sinking ship. Mayer gave Yahoo another final push by acquiring several startups for competing with mobile apps. She hired famous media personalities like Katie Couric and also acquired Tumblr for reaching out to a young demographic. But all these expensive efforts did very little to turnaround Yahoo’s lost business.