Verizon acquires ailing Yahoo
Yahoo was one of the pioneer companies of the World Wide Web, starting out as a directory for businesses before expanding its foray in various digital services such as search. Yahoo, went on to become one of the most valuable
companies in the world and was at one time valued at $125 Billion. The company however failed to compete effectively owing to increased competition in search by companies such as Google; competition on social media owing to rise of companies such as Facebook and on the Video front with the rise of YouTube and others.
Today, its been announced that Yahoo will be sold to Verizon for a mere sum of $5 Billion. The sale according to NewYork Times includes its core internet business as well as its vast land holdings. Yahoo will however retain its stake in e-commerce giant Ali Baba, its patents and ownership of the incredibly popular Yahoo Japan. The deal which was concluded today will see Yahoo combine with those of AOL, a company acquired by Verizon, a leading telco in the US. There were 5 other bidders for Yahoo who included British tabloid, Daily Mail but Verizon seemed the more formidable bidder.
According to Bloomberg News, Verizon is looking to become a vertically integrated company with a strong content operation targeting its customers and advertisers. Yahoo has in recent times sought to turnaround its operations including the hiring of Marissa Mayer from Google. Despite her best efforts including acquisition of Tumblr and Summly the firm did not gain the much needed traction. Mayer also dedicated a large team of employees towards re-inventing search. There are also those who are keen to remind us that in the past, Yahoo failed to acquire both Google and Facebook, companies that would have allowed it to remain competitive beyond its early success.
In our discussions here at Techweez, one of us pointed that is deal is scary. AOL, owns Huffington Post, Tech Crunch, Engadget and AOL (email and search service). Yahoo on the other hand, owns Yahoo mail, Yahoo Search, flickr and Tumblr. Then there is the core telco operation by Verizon. Think about the amount of data Verizon will have, from what you read, who you email, who you call.
So long Yahoo!