Verizon Communications on Monday announced that it plans to purchase Yahoo’s Web assets for a sum of $4.83 billion in cash. That’s a heck of a fall from grace for Yahoo as it once had a market cap of $125 billion. Some notes:
- The deal is expected to close in early 2017
- Yahoo CEO Marissa Mayer, who was expected to leave one way or the other. Though she personally expects to remain with the company. Good luck with that Marissa .
- The deal boosts adds to the fact that Verizon owns what’s left of AOL (Remember them?) by giving it access to Yahoo’s advertising technology tools, as well as other assets such as search, mail, messenger and real estate.
- Yahoo as a separate company is basically no more as it leaves it only as the owner of a 35.5 percent stake in Yahoo Japan, as well as its 15 percent interest in Chinese e-commerce company Alibaba.
I have to admit that I’ve been around long enough to remember when Yahoo was a really big deal. Now it’s being sold for pennies on the dollar. That’s pretty sad. I also wonder what Verizon sees in what’s left of Yahoo. But I’m a computer nerd and not an MBA, so I’ll leave it to the MBA types to comment on this part as I am guessing that the ones that work for Verizon see something in these assets that the rest of us don’t.