Telecommunications giant Verizon is expected to announce a $4.8Billion to purchase Yahoo. According to International Business Times, the announcement is going to take place on 25th July 2016 before trading opens in New York.
Since the bidding on Yahoo since April, Verizon has emerged as a front-runner and it is likely to combine Yahoo with AOL, which Verizon bought last year at roughly $4.4 Billion. After the sale, Yahoo shareholders will be left with about $41 Billion in investments in the Chinese e-commerce company, Alibaba.
Yahoo had a market capitalization of $125 Billion in 2000, but in recent years it has ben struggling to remain profitable as it competes with Google and Facebook for digital market advertising share.
Marissa Mayer, Yahoo’s chief executive is not expected to join Verizon, but according to Equilar, a compensation research firm, she is expected to receive a severance payout, including stock compensation worth $218 million for her time at Yahoo.
In the end, Yahoo was done in by the younger tech giants Google and Facebook, who have been able to survive due to continuous reinvention. Yahoo however was not able to get ahead of the curve.