June 28, 2017
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Verizon Acquires Yahoo Despite Breach

Sometime last year, Verizon was set to acquire Yahoo at $4.83 billion by the first quarter of 2017. But because of a Yahoo security breach, the acquisition deal had to be delayed to the second quarter.

Why are they pushing through?

Photo courtesy of Yahoo Safety Center

Some investors would have probably opted out from the deal at the slightest signs of a problem. Verizon decided to push through anyway because they found that majority of Yahoo’s users remained even after the mishap. Of course, because of the ‘defect’, the price was brought down to $350 million less than the original.

Photo courtesy of CNN

The latest information released by Yahoo about the buy-out states that the deal would close by June 30. Verizon, on the other hand, has not given their statement.

Future plans

Photo courtesy of Wall Street Journal

Once the acquisition is achieved, Verizon’s plan for Yahoo is to team them up with AOL. Their collaboration is expected to produce a platform that would build on the strength of online advertising. The new company “Oath” is expected to go up against the likes of Google and Facebook. And even prior to the deal being finalized, Verizon has already released a teaser.

 

Do you think Verizon’s Yahoo acquisition is a brilliant move? We hope to find out soon.