Yahoo is no More as an Independent Company

Yahoo is no More as an Independent Company

You can't be too compfortable when competetion is great. US internet firm #Yahoo is being acquired by American telecoms giant Verizon Communications for nearly $5bn (£3.8bn) in cash.Yahoo will be combined with AOL, another faded internet star, which Verizon bought last year.The deal does not include Yahoo's valuable stake in Chinese firm Alibaba.

The price tag for the deal is well below the $44bn Microsoft offered for Yahoo in 2008 or the $125bn it was worth during the dot.com boom.
Yahoo's Time Line and why they don't exists as independent company Now :-

  • 1994 Yahoo - which stands for Yet Another Hierarchically Organized Oracle - is founded.
  • 2000 Yahoo valued at $125bn at height of dot.com boom.
  • 2002 Google rejects a $3bn bid from Yahoo.
  • 2008 Microsoft's $44.6bn offer for Yahoo is turned down.
  • 2013 Blogging site Tumblr acquired by Yahoo for $1.1bn.
  • 2015 Yahoo makes net loss of $4.4bn.
  • 2016 Verizon agrees $4.8bn deal to buy Yahoo.

Why Yahoo came under intense pressure to sell itself off ?

The big fear of Yahoo's Wall Street critics wasn’t just that Yahoo management would fail to turn a profit; it was that they'd burn up billions of dollars in a futile effort to turn Yahoo around. Yahoo had enough cash in the bank to continue its current losses for a few more years, and after that it could have sold its #Alibaba and Yahoo Japan stakes to buy itself more years of money-losing operation.
Marissa Mayer Current CEO of Yahoo
But while Yahoo's management and employees obviously like to have a big cash cushion, shareholders weren’t interested in endlessly subsidizing a money-losing business. And so last year, Wall Street started to ratchet up the pressure on Mayer to separate Yahoo's core internet business from its stakes in Alibaba and Yahoo Japan.

Yahoo is no More as an Independent Company Yahoo is no More as an Independent Company Reviewed by Ankita Deshmukh on 12:02 PM Rating: 5
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