Verizon to buy Yahoo’s core business for $4.48 billion
“Verizon said on Tuesday it would buy Yahoo’s core business for $4.48 billion, lowering its original offer by $350 million in the wake of two massive cyber attacks at the internet company,” Reuters reports.
“The closing of the deal, which was first announced in July, had been delayed as the companies assessed the fallout from two data breaches that Yahoo disclosed last year,” Reuters reports. “The deal brings to Verizon Yahoo’s more than 1 billion users and a wealth of data it can use to offer more targeted advertising. Verizon will combine Yahoo’s advertising technology tools as well as its search, email and messenger assets with its AOL unit, purchased for $4.4 billion in 2015.”
“The combined Yahoo and AOL businesses will help diversify Verizon away from its core wireless business, wrote Jennifer Fritzsche, an analyst at Wells Fargo, but ‘we would note its digital media and advertising business would still be a small percentage of revenues,'” Reuters reports. “Verizon and Yahoo said they expect the deal to close in the second quarter.”
