Verizon set to take over, Yahoo, Good or Bad?

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Verizon Communications Inc (VZ.N) said on Monday it would buy Yahoo Inc's (YHOO.O) core internet properties for $4.83 billion in cash to expand its digital advertising and media business, ending a protracted sale process for the fading Web pioneer.

The purchase will boost Verizon's AOL internet business, which it bought last year for $4.4 billion, as it gains access to Yahoo's ad technology tools, BrightRoll and Flurry, and search, email and messenger assets( Yahoo mail is no longer the sole property of Yahoo)

Verizon, the No. 1 U.S. wireless operator, has in recent years looked to mobile video and advertising for new sources of revenue in an oversaturated wireless market. It has also scaled back on its Fios TV and internet service.

Verizon could combine data from AOL and Yahoo users in addition to its more than 100 million wireless customers to help advertisers target users based on online behavior and preferences.

Yahoo Chief Executive Officer Marissa Mayer said on a conference call with investors that she planned to stay at Yahoo through the deal's close. Walden, who will head the combined company, told CNBC the new leadership team has yet to be determined.

"It's a decade of mismanagement that has finally ended for Yahoo," said Recon Analytics analyst Roger Entner. "It's the continuation of an extension of Verizon's strategy toward becoming a wireless internet player and a move away from (telecom) regulation for Verizon into an unregulated growth industry."

Shares of Verizon dipped 0.4 percent to $55.88, Yahoo fell 2.6 percent to $38.37.

Source: Reuters

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