Yahoo will be sold for $5bn to Verizon


Media reports say that Yahoo’s search and advertising operations will be sold to US telecoms giant Verizon Communications for $5bn.

On Friday the two firms announced about it in exclusive talks about the deal which will be soon.

Earlier in February US internet firm Yahoo informed that it was looking at “strategic alternatives” for internet business development.

2016-07-22T135053Z_1_LYNXNPEC6L0X2_RTROPTP_2_YAHOO-M-A-VERIZON.JPG.cfVerizon refused to give any comments about the question.

It is expected that formal announcement will be before US markets open for trading on Monday.

Some analysts claim that Yahoo failed to remain important in many of its core markets. The changing internet advertising landscape make Yahoo straggle to keep up over the last years.

Marissa Mayer was appointed to be chief executive in 2012. Since that time the company has a little progress in returning profit.

Low price

According to the report which was made last week the company lost $44om in the second quarter. While there is a “great progress on strategic alternatives” which became available with the help of the board.

As BGC analyst Colin Gillis claims they expect that the Yahoo board will bring the process to a close when they accept the offer for $5-plus billion.

This price is lower than the market value of the firm ($125bn) at the height of the boom.