In a recent development, leading American wireless network provider, Verizon, is closing in on a deal worth $5 billion to acquire Yahoo; a company which once, was among the largest internet companies of the world. The Sunnyvale based giant primarily known for their search engine and mailing client hasn’t been doing great off late, with the company in the process of selling most of its assets including their core products.
Yahoo in fact sold their sprawling 48-acre San Jose plot in the heart of Silicon Valley to the high flying Chinese firm LeEco for a whopping price of $250 million a few weeks back. In fact, Marissa Mayer led Yahoo is reported to reveal their winning bid for their core assets this week and it so far seems that Verizon is the leading the race. Apart from Verizon, telecom giant AT&T and another relatively unknown firm known as Vector Capitals were also in the race to take over Yahoo. But unlike others four potential investors, Verizon wasn’t quite interested in Yahoo’s land assets and intellectual properties. Rather their primary aim is to take over Yahoo’s existing core products including the Search Engine, Mail and a number of popular sites like Flickr and Tumblr.
Analysts have been touting Verizon as the obvious buyer of Yahoo since the past week, as they felt the American telecom giant is in the best state to turn things round for the Sunnyvale headquartered internet company. Considering Verizon’s prowess in advertising technology and their news distribution expertise thanks to the acquisition of AOL, that estimation isn’t quite far stretched. Now, internal sources have revealed to Bloomberg that Verizon is already in the final steps of completing the deal with Yahoo and a formal announcement would be done soon. That said, there’s still a chance that the deal mayn’t work out but that quite unlikely.
With the acquisition of Yahoo, Verizon would place themselves in a sweet spot to take on two of the largest players in the internet space – Google and Facebook. Seeing the recent trends in the wireless market, Verizon had been looking out for an opportunity to diverge its business into greener pastures. So it won’t be quite of a surprise if Verizon eventually ends up acquiring Yahoo later this week.
Photo Credits:The Countrycaller