Why Verizon want to buy Yahoo for $4.8 Billion

Why Verizon want to buy Yahoo for $4.8 Billion
  1. Verizon sees online advertising as a fundamental way to increase growth in the modern world.
  2. Verizon bid also includes Yahoo’s search, mail, messenger and ad technology, which will help Verizon to stand ahead of competition.
  3. Yahoo will bring millions of viewers from its News, Sports and Finance websites, which will help Verizon to build larger audience.
  4. Yahoo’s substantial amount of user data would give Verizon a collection of ad-serving and targeting services, content and a huge audience.
  5. By Merging together the tools & technologies from Yahoo and AOL (acquired in June 2015), Verizon might be able to compete with dominant competitors Google and Facebook.

Yahoo still holds 15% percent of Alibaba’s share worth $31 Billion and 34% of stake in Yahoo Japan worth $8.3 Billion into its pocket, which are not the part of acquisition. Marissa Mayer, last standing CEO of Yahoo expressed that she is willing to stay in Yahoo to look after the transformation of the company to next step. She believes that Yahoo’s combination with Verizon and AOL will bring acceleration in mobile, video, social and native advertising.

Last but not least, we have to remember that Yahoo worth $125 Billion in 2000 and it rejected $44 Billion buyout from Microsoft in 2008.

References:

Here’s Why Verizon Wants to Buy Yahoo So Badly

Verizon buys Yahoo for $4.83 billion

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