Verizon Said to Be Ready to Announce $4.8 Billion Yahoo Takeover

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On Monday, Yahoo’s years-long fight to survive as a standalone company will draw to a close.

Verizon Communications will announce plans to buy Yahoo’s core assets for a bit more than $4.8 billion before the market opens, said two people with direct knowledge of the situation who asked not to be identified because the information isn’t public.

The deal includes Yahoo real estate assets, while some intellectual property is to be sold separately, the people said. Yahoo will be left with its stakes in Alibaba Group Holding and Yahoo Japan Corp., with a combined market value of about $40 billion.

A transaction stands to finally seal the fate of web pioneer Yahoo after months of speculation and pressure from investors including Starboard Value. The deal will add the company and its millions of daily users to Verizon’s growing stable of media properties and is also likely to end the reign of Yahoo Chief Executive Officer Marissa Mayer, who tried and failed to re-invent Yahoo as an independent company.

Read full article here. 

AOL Is Verizon’s $4.4 Billion Bet On Mobile Video

Verizon-Wireless-e1421944641833To Wall Street, Verizon’s surprise $4.4 billion offer for Internet stalwart AOL is all about ad tech. The market for mobile advertising is booming, with total revenues expected to jump 61% this year to $68.7 billion, according to eMarketer.market for mobile advertising is booming, with total revenues expected to jump 61% this year to $68.7 billion, according to eMarketer.

Verizon can now take a decent bite of that by controlling AOL’s programmatic ad platform ONE, which helped AOL take 2.1% of the $51 billion U.S. digital ad market in 2014, a share which Verizon no-doubt would like to see grow.

Verizon is taking advantage a crucial trend to to avoid the “dumb pipe” fate that has befallen so many carriers: the world is watching more and more video on mobile devices.

A third of all online video views in the first quarter of this year took place on tablets and smartphones, which was more than two times what it was the year before, according to video analytics firm Ooyala. And that the trend is accelerating, thanks to faster 4G networks and crisper HD smartphone screens. Read full article here.