The American telecommunications company Verizon has confirmed that it is buying Yahoo for USD 4.83 billion, reports the Associated Press.
The web activity of Yahoo will, according to Lowell McAdam, the chairman and CEO of Verizon, be integrated into the recently acquired AOL, which will result in “creating a leading global media company and will contribute to increasing our profit in the sector of digital advertising”, as reported by AFP.
The transaction, as AFP reports, should be realized in the first quarter of 2017.
Numerous media have previously reported that Yahoo's core assets will be sold to the American telecommunications company Verizon for USD 4.8 billion, and The New York Times wrote that the agreement will not encompass Yahoo's share in the Chinese online giant Alibaba and in Yahoo Japan.
The agreement is an indicator of the fall of Yahoo, whose market value amounted to over USD 100 billion before the dot.com crash of 2000, whereas in 2008, it received an offer by Microsoft for the takeover worth USD 44 billion.
Yahoo had 12,500 employees at the end of 2014, whereas in mid-2015, there were 11,000 employees in the company. At the time, according to Business Insider, the most valuable companies in the IT market were Apple (USD 763 billion), Google (USD 373 billion), Alibaba (USD 233 billion), Facebook (USD 226 billion) and Amazon (USD 199 billion).
Due to increased competition in the form of Google and Facebook, Yahoo failed to expand its web activities and to significantly increase its ad revenue. This is why Yahoo shares have lost around a third of their value in the past twelve months.