A Yahoo logo is visualized in front of a building in Rolle, 30 km (19 miles) east of Geneva, December 12, 2012.
Reuters/Denis Balibouse/File image
<articleLocation” > Verizon Communications Inc (VZ.N) will announce a contract on Monday to buy Yahoo Inc (YHOO.O) for about $5 billion, according to a person familiar with the matter. The statement will come before the start of New York trading hours, the source included. The deal will end months of uncertainty about Yahoo’s future after the company revealed plans to evaluate tactical options in February. Yahoo and Verizon both declined to comment. Bloomberg first reported the offer would be announced on Monday for $4.8 billion.
Reuters reported on Friday that Verizon had actually become the front-runner in the Yahoo auction. The deal would enhance Verizon’s AOL web business, which the company acquired in 2014 for $4.4 billion, by providing it access to Yahoo’s advertising technology tools, along with other assets such as search, mail, messenger and realty. It would likewise mark completion of Yahoo as a running company, leaving it only as the owner of a 35.5 percent stake in Yahoo Japan, in addition to its 15 percent interest in Chinese e-commerce business Alibaba Group Holding Ltd (BABA.N).
Begun in 1994 by Stanford college students Jerry Yang and David Filo, Yahoo in its early years was the destination of option for lots of making their very first forays onto the Internet. By 2008, Yahoo was warding off a controversial takeover bid from Microsoft Corp (MSFT.O) and having a hard time to specify its mission.
That concern was never really responded to, resulting in years of management instability and shifting top priorities. In December, Yahoo scrapped strategies to spin off its Alibaba stake after investors stressed over whether that transaction might have been carried out on a tax-free basis. It rather decided to explore a sale of its core assets, spurred on by activist hedge fund Starboard Value LP. (Reporting by Liana Baker in San Francisco and Carl O’Donnell in New York; Modifying by Lisa Von Ahn and Peter Cooney).