Verizon will soon be announcing its acquisition of Yahoo’s core assets for a mere $4.8 billion, a sad amount that the iconic company, once valued at $125 billion, is happy to settle for.
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The deal will leave Yahoo as a separate investment company that will change its name after the transaction.
The deal will also include the sale of real estate assets, while some intellectual property will be sold separately.
Yahoo’s biggest value, however, this has rested in their stakes in Chinese online retail, Alibaba and Yahoo Japan and those will remain with Yahoo.
Verizon declined to comment on the reports. If she is terminated, she will make over $50 million in compensation.
Chief executive Marissa Mayer, who took the helm in 2012, has made little progress in returning the company to profit.
Yahoo has come a long way having started as a mere directory of websites. It went on to roll out Internet services like search engines, email, Yahoo Messenger, news and entertainment portal, and much more.
Yahoo had a lot of redundant services that were basically free for users, relying on ads for its revenue.
A source told Reuters that the deal will be announced today, before trading hours in NY kick-off – the stock exchange opens at 9:30 EST, just over four hours from now, so we’ll likely hear about this later on this morning, or very early afternoon.
Verizon acquired AOL just over a year ago for a similar sum, picking up its media publications and internet might, along with plans to bolster the mobile streaming side of its business.
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The US largest telecom provider, Verizon Communications prepares the plan to buy Yahoo. Several sources including Bloomberg and Reuters have reported that Yahoo’s board at the Silicon Valley agreed a $4.8 billion deal.
