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Original Post: Verizon is close to acquiring Yahoo. Its Done!
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Verizon is closing in on a deal to buy Yahoo’s core business for about $5 billion.
The value of the deal is reportedly around $5 billion for the core parts of Yahoo.
Verizon communications ready to pay around $5 billion for yahoo's core business in search, email, advertising and media.
The $3 billion offer Verizon is expected to make next second bid is lower than the $4 billion to $8 billion bids that Yahoo’s Internet business, which includes its news sites and ad business.
What happened to Yahoo?
On 18th July yahoo posted a deep loss which explains the challenges facing a potential acquirer of the shrinking internet business.
Yahoo loosing its visitors day by day if we observe internet search visitors statistics.
Loosing visitors :
Yahoo value lies in its users. But now it is loosing visitors and no more competition to google and Facebook. Yahoo losts its competitive edge
Analysis of the statistics from last decade shows how yahoo loosing its advertising revenue and search traffic.
Yahoo search engine share decreased from 42% to 12%.
Revenue share dropped from 25% to 3%.
The Company is Shrinking:
In 2015 its $4.4 loss in annual net income.
Yahoo hired Marissa mayer from google to get some positive results but she but it became largely unsuccessful.
Yahoo fired key people also resigned some key people because of pressure from share holders.
The company has sixth decline in last seven periods.
So Its Verizon Yahoo !
SunTrust analyst Robert Peck recently estimated that Verizon would lay off upwards of 40% of Yahoo’s 10,000 full-time employees (in order to save roughly $2 billion).
“Google has access to me on my mobile phone but is kind of missing the cable box and internet access data that Verizon has,” said Shar VanBoskirk, a digital marketing analyst at the research firm Forrester.
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