Verizon emerges frontrunner to acquire Yahoo for $5 billion
Verizon plans to acquire Yahoo as the latter is finding it tough in the face of diminishing ad revenue.
Information giant Verizon has reached the final stages of its talks with Yahoo to acquire the dotcom pioneer, reported the NY Times. Verizon is planning to acquire Yahoo for around $5 billion, said sources.
Yahoo has said that it will not comment on the deal, unless substantial progress has been made on the deal. "It wanted to ensure complete integrity of the deal", reported Bloomberg about the deal, quoting Yahoo officials.
The deal is most likely to work out in the coming week itself, said NY Times, quoting sources. However, officials from Verizon have declined to comment on the deal so far. The transaction is most likely to acquire Yahoo's core internet business, said officials. However, Yahoo has stakes in real estate and patents as well, said media reports.
The deal would pave way for the demise of Yahoo, one of the internet pioneers, who revolutionized the sector, say experts. Reportedly Yahoo has decided to quit in the face of increasing competition it has been facing from competitors like Facebook and YouTube.
Yahoo admitted that its revenue has dipped by 15 percent in the second quarter while operating profit decreased by 64 percent.
Yahoo also stated one of its costliest asset under its current CEO, Marissa, Tumblr is now worth only one-third of its original price.
In the US digital entertainment market, Yahoo's share has shrunk to a mere 3%, while that of Facebook and You Tube stand at 15% and 4% respectively, reveal sources. This has made the company to explore options to quit the field, added experts. Verizon which owns the information network, AOL has figured among the frontrunners for the takeover. Yahoo has received bids from some of the other major leaders like AT&T, TPG Capital also. However, a clear picture on the deal is most likely to appear from next week only.
Yahoo has started to process the bids from last Monday.