July 26, 2016 — Verizon has announced its plan to acquire Yahoo!, which has more than 1 billion monthly active users, including 600 million monthly active mobile users through its search, communications and digital content products. The deal is worth $4.83 billion in cash.
Yahoo also connects advertisers with target audiences through an advertising technology stack that combines data, content and technology.
“Just over a year ago we acquired AOL to enhance our strategy of providing a cross-screen connection for consumers, creators and advertisers,”said Lowell McAdam, Verizon chairman and CEO. “The acquisition of Yahoo will put Verizon in a highly competitive position as a top global mobile media company, and help accelerate our revenue stream in digital advertising.”
Yahoo and AOL are two of the pioneers that popularized the Internet with email, search and real-time media, but each had struggled to remain relevant as social media took the stage as the primary way Millennials communicate.
The addition of Yahoo to Verizon and AOL will create one of the largest portfolios of owned and partnered global brands with extensive distribution capabilities. Combined, AOL and Yahoo will have more than 25 brands in its portfolio for continued investment and growth. Yahoo’s key assets include premium content brands in major categories including finance, news and sports, as well as an email service with hundreds of millions monthly active users. Additional technology assets in the advertising space include Brightroll, a programmatic demand-side platform; Flurry, an independent mobile apps analytics service; and Gemini, a native and search advertising solution.