US telecom giant Verizon nears $5-billion deal to buy internet pioneer Yahoo
Verizon Communications is nearing a deal to buy Yahoo , beating out rival bidders for the iconic web pioneer, people familiar with the matter said.
Verizon is discussing a price close to $5 billion for Yahoo’s core internet business, one of the people said and the deal doesn’t include the company’s patents at this stage.
While other assets including Yahoo’s real estate were also on the block, it could not immediately be learned if they are part of the deal. The companies may be ready to announce the deal in the coming days, but the agreement hasn’t been finalized and may still fall apart, the people said, asking not to be named.
“The buyer that could make the most out of these assets has apparently won,” said Roger Entner, an analyst with Recon Analytics.
A representative for Verizon declined to comment. A representative for Yaho o couldn’t immediately be reached outside of regular business hours.
AT&T and Quicken Loans founder Dan Gilbert, as well as buyout firms Vector Capital Management and TPG we re also active in the bidding process until the end.
Yahoo has millions of users, a collection of websites including Flickr, Tumblr and Yahoo Finance and Sports and some useful digital-ad tech. Together with AOL, the new Yahoo under Verizon may have a better chance of competing in a digital ad market dominated by Google and Facebook.