Why Yahoo Was Up For Sale?
Founded in 1995, Yahoo! was once the brightest star of the Web. But when its rivals including Google, Facebook and even few-years-old companies like Snapchat and WhatsApp have won over users, Yahoo! has not been able to maintain that glory.
Yahoo! CEO Marissa Mayer – formerly a Google executive – has spent billions on acquisitions so far to improve Yahoo’s mobile products, expanding its audience by acquiring Tumblr and doubling down on premium media content.
But Mayer struggled to slow the overall ad sales decline of Yahoo! and failed.
Last Monday, the company accepted that its revenue fell 15% in the second quarter, after excluding accounting adjustments, and its operating profit fell 64%.
So, after keeping investors at bay for years, Mayer said Yahoo! would explore strategic alternatives, including selling its core assets.
Verizon has long been considered a suitable buyer for Yahoo’s Internet assets, which the telecom giant wants to combine with AOL – the American global mass media corporation bought by Verizon last year for $4.4 Billion.
Now, the two companies are in one-on-one discussions, and Verizon will reportedly acquire Yahoo! for about $5 Billion.