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Verizon to buy Yahoo in £3.8bn deal

Posted on Jul 25, 2016.

Verizon Communications a US telecoms giant have announced they are to buy Yahoo's search and advertising operations in a deal worth $5bn (£3.8bn). This deal ends months of uncertainty about Yahoo's future.

Yahoo has been seen to be struggling over the past few years as the internet advertising landscape has evolved. Yahoo has struggled to keep up and has received much criticism that it is no longer relevant in many of its core markets.

Verizon buys Yahoo

It was back in February that Yahoo announced that they were looking at strategic alternatives for its core internet business and have recently announced they have made great progress achieving this despite a second-quarter loss of $440m Yahoo. Prior to this announcement it had been expected that Yahoo would accept any offer of $5bn plus, a price tag that is well below the $125bn market value at the height of the boom.

The future for Yahoo

The future for Yahoo will likely see a merger between Yahoo and Verizon owned AOL as Verizon hope to create a digital group that can take on the likes of Google and Facebook. Taking ownership of AOL also gave the company ownership of the Huffington Post, Techcrunch, Engadget and other news sites. With this network, they were able to deliver more personalised adds by tracking data already collected by these AOL sites. Merging AOL with Yahoo is expected to further boost Verizon's internet business and data tracking capabilities.

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