Yahoo Inc. has been sold to the American Telcom company Verizon for an estimated fee of about $4.83 billion. After so many bidding from top companies. This makes Yahoo Inc. 21 year tenure as an independent company now over.
This completes the Yahoo Inc. CEO Marissa Mayer promise of revitalizing the company since taking over about 4 years ago. Yahoo now joins AOL in the Verizon line as AOL was also bought by American Telcom Company in 2015.
Though many people would say the price Yahoo Inc. was purchased by Verizon is way too low compared to what Microsoft offered in 2008 (a staggering $40 billion difference). The CEO of Yahoo Inc. Marissa Mayer says the joining of Yahoo with AOL and Verizon will help continue to change the world. There are rumors that the CEO Marissa Mayer will step down or accept his new position under Verizon.
Why Yahoo Inc. was Sold to Verizon
Yahoo Inc. sold to Verizon due to persistent rise and fall of profits made by the company, over the years the profits made from Yahoo and its services have subsequently dropped due to the emergence of rival webmail such as Gmail, Hotmail and even AOL.
Marissa Mayer was quoted in a memo sent to employees “For me personally I am planning on staying, “I love Yahoo, and I believe in all of you. It’s important to me to see Yahoo into its next chapter.” The Chief Officer of AOL Tim Armstrong said “The single biggest thing this whole deal is about is scale,” Armstrong told Harlow.
“We will essentially end up being one of the largest portfolios of consumer brands in the world for digital; He wants to unlock the full potential of Yahoo as the company has dropped over the past few years. Marissa Mayer has made little progress in bringing yahoo back to its glory days as just last week Yahoo Inc.
reported loss of $440 million. Presently Verizon has over 25 brands with Yahoo, Flickr, Tumblr amongst others. Verizon ranks 70TH in Top most powerful brands By Tenet Partners, CoreBrand it also Ranks 5TH Brands finance US top 100 by Brands Finance. This might just be what Yahoo needs to become one of the best again.