Verizon said to be buyer of Yahoo for $5 billion

A sale would put an end to Yahoo’s 21-year history as an independent company.

The deal will end months of uncertainty about Yahoo’s future after the company announced plans to review strategic alternatives in February.

FILE – In this April 7, 2013, file photo, the Verizon studio booth at MetLife Stadium in East Rutherford, N.J. Verizon has agreed to buy online portal Yahoo Inc. for roughly $5 billion, according to multiple media reports sourcing unnamed sources. “The price negotiations still can be tough because it also doesn’t need Yahoo”. She references the amount as “about $5 billion”, and writes that an announcement is expected Monday. The company’s market capitalization is about $37 billion.

The exact terms of any acquisition were not clear.

Verizon is perceived as a favorite because it sees the most value in Yahoo, said Rob Enderle, principal analyst with the Enderle Group.

The deal will add the iconic web pioneer and its millions of daily users to Verizon’s growing stable of media properties, said Bloomberg.

“With the lowest cost structure and headcount in a decade, we continue to make solid progress against our 2016 plan”, said Mayer.

Verizon has reportedly emerged as the leading bidder ahead of AT&T, Quicken Loans Inc. founder Dan Gilbert, and private equity firms TPG and Vector Capital.

Paying $4.8 billion for Yahoo is slightly more than what Verizon paid for AOL a year ago and the relationship is aimed at strengthening the telecommunication company’s advertising and content offerings.

“Verizon has always been the favorite because it has the largest potential synergies and therefore can pay the most”, said Erik Gordon, a professor at the University of Michigan’s Ross School of Business. Presumably, any deal would not include arrangements for Yahoo!’s most valuable properties, its stake in Yahoo!

Mayer declined to comment on any bids at the time but said the company would pursue its reorganization at the same time it negotiates with bidders.