According to various reports making rounds on the Internet, Verizon Communications Inc. (NYSE: VZ) is close to acquiring Yahoo (NASDAQ: YHOO) including its core assets i.e. search, content, mobile, and advertising business for around $5 billion.
Verizon, always considered the in all potential purchaser antecedent to Yahoo pushing forward its core business assets on sale, could be seen successfully closing the deal, as indicated by a someone acquainted with the matter to WSJ.
Other competing bidders may emerge once again, but the possibility is highly unlikely due to the fact that Verizon is already in the lead. Some other money related details aren’t promptly accessible. However, according to a few reports, Verizon may end up buying Marissa Mayer led Yahoo at around $5 billion.
“In order to maintain the integrity of the process, we won’t be commenting until an agreement is finalized,” a Yahoo spokeswoman told WSJ.
Interestingly, spokespersons from both the companies have declined to comment on the matter. However, it’s quite apparent that things are getting pretty ugly at Yahoo as the company is miserably failing to provide any value to shareholders. Things are very unclear as of now to speculate on what happens in the future in the event of Verizon ending up completing the deal.
Numerous reports are speculating that the deal may come to an end as soon as next week, and so the 21-year history of Yahoo as an independent company. The CEO of Verizon-owned AOL, Tim Armstrong will be in charge of Yahoo unless it doesn’t be a part of Verizon.
Verizon has a market capital of $225 billion and around $4.5 billion in cash to spend on Yahoo acquisition. If everything goes as per the plan, Verizon would definitely try to get a positive outcome by means of its digital media business including AOL properties it got ownership of last year.