Verizon wins the auction for Yahoo: $4.8 billion bid

9 years ago - Published in Finance, Fundamental Analysis

Verizon Communications has reached an agreement of $ 4.8 billion value to acquire part of the assets of Yahoo and close a long auction process for the former pioneer of the internet world.
The transaction concerns the internet business Yahoo and real estate and is expected to be announced during the day today. The price is far below the market capitalization of over 125 billion dollars achieved from Yahoo at the time of the dot-com bubble.

The company led by Marissa Mayer has already announced that it will change its name at closing. The agreement marks the end of Yahoo as an operating company, leaving a 15% stake in the Chinese e-commerce giant Alibaba and a stake of 35.5% in Yahoo Japan Corp.

"The sale of our operating activities, which is separated effectively from our Asian equity assets, is an important step in our plan to unlock value for Yahoo shareholders," the chief executive, Marissa Mayer, said in a note. The shares in Alibaba and Yahoo Japan are worth about $ 40 billion at market prices, while Yahoo only has a market capitalization of 37.4 billion dollars.