Verizon To Acquire Yahoo For $4.8 Bn

yahoo_verizon_acquisitionVerizon Communications on Monday is expected to announce the acquisition of internet behemoth Yahoo. The deal value is expected to be close to $5 billion or, as per some sources, $4.8 billion. A formal announcement is expected early Monday, reports M2MCafe.

Verizon is believed to have agreed to pay $4.8 billion to acquire Yahoo, one of the early internet pioneers. It sounds really unbelievable that Yahoo is being sold for this value whereas the internet pioneer, once upon a time , used to have market capitalization of over $125 billion.

Verizon, the New York based communications firm, will buy Yahoo’s real estate and the core internet infrastructure and other assets in this transaction.

The auction for this acquisition of Yahoo started in April. In the last three months of auction process the notable bidders were AT&T, Advent International, Vista Equity Partners, TPG and Quicken Loans founder Dan Gilbert.

However, since beginning Verizon had been the front runner. In June it had bid for $3 billion and later in June it raised it to $4.4 billion.

Verizon Communications with market capitalization of $228 billion is believed to retain the brand ‘Yahoo’ post acquisition and the company wants to become world’s largest digital media firm.

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