Verizon Communications is believed to have agreed to pay $4.8 billion to acquire Yahoo, one of the early internet pioneers. It sounds really unbelievable that Yahoo is being sold for less that $5 billion while, during its peak time, it was being valued at more than $125 billion.
Verizon, the New York based communications firm, will buy Yahoo’s real estate and the core internet infrastructure and other assets in this transaction.
This acquisition is the result of an over 3-month long auction process, though not continuous. The auction for Yahoo buy out was announced in April and the known names those bid for the internet behemoth included AT&T, Advent International, Vista Equity Partners, TPG and Quicken Loans founder Dan Gilbert.
However, since beginning Verizon had been the front runner. In June it had bid for $3 billion and later in June it raised it to $4.4 billion.
Verizon Communications with market capitalization of $228 billion is believed to retain the brand ‘Yahoo’ post acquisition and the company wants to become world’s largest digital media firm.