Interestingly, while this deal signals the end of Yahoo as a trading company in the West, Yahoo does still exist in the form of Yahoo Japan (of which it will still retain 35.5%) and a 15% stake in China’s Alibaba.com e-commerce company. Yahoo’s estimates were based on a share price of $33.26 on December 31. Its shares finished at $39.38 last week.
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Five Yahoo executives – including Mayer – collectively stand to gain more than five times as much cash from a sale than if they were laid off. The five officers – which also include Ken Goldman, David Filo, Lisa Utzschneider and Ronald S. Bell – would see more than $100 million combined if they depart within a year, compared to a combined $17.8 million from severance packages. That, more than any other factor, precipitated investors’ eagerness for Yahoo to sell.
The deal is expected to be announced formally on Monday before markets open, the reports said.
Shortly after, Yahoo hires Google to power its search engine results.
The deal will, however, turn over the popular Yahoo News, Mail and other online services used by more than a billion people worldwide.
-Mayer became CEO of Yahoo in July 2012. That means this acquisition will also serve as a way for Yahoo to separate its internet business from its Asian assets.
Yahoo drops Google as its search engine provider. Yahoo reaped a almost $1.4 billion profit by selling all of its Google stock. ( FB ) and Google, a unit of Alphabet Inc.
But Roger Kay of Endpoint Technologies Associates said Verizon should keep its goals more modest and may get a small benefit from the Yahoo brand. She had been a high-profile executive at Google, joining that company in its infancy. The bid is eventually raised to $47 billion before Microsoft CEO Steve Ballmer abruptly rescinds the offer after Yang demands even more money. Starboard, which had threatened to oust Mayer and the rest of Yahoo’s board, reached a truce with the company in April, with Starboard getting four seats on Yahoo’s board. Another activist investor, Daniel Loeb, threatens a shareholder mutiny and then discovers Thompson’s official biography included a fictitious college degree.
Yahoo’s CEO Marissa Mayer is staying at Yahoo for the moment. Yahoo has written down half of Tumblr’s value this year. According to the announcement, these assets will be held by a new publicly traded company once the transaction is completed. Mayer calls off the proposed spin-off at the end of the year, citing uncertainty whether the tax dodge would work as envisioned.
Mayer believes Yahoo can still come back now it it’s about to join a bigger company in Verizon.
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Verizon’s $4.83 billion acquisition of Yahoo, announced today, will create “a new rival in mobile media technology”, according to the company.
