On July 25th 2016, Verizon announced that it is buying internet pioneer, Yahoo, for $4.83 billion in cash. The deal will allow Verizon to join Yahoo with AOL (America On Line), which it purchased in 2015 for $4.4 billion. As part of the deal Verizon will also gain access to Yahoo's search, news, finance, sports, video, and email brands, as well as the storage site Flickr and the Tumblr social network.
Yahoo was founded in 1994 by two Stanford graduates, Jerry Yang and David Filo who called the site, Jerry & David's Guide To The World Wide Web. They quickly changed the name to Yahoo and by 1996, the Yahoo brand was being publicly traded on the New York Stock Exchange. It rode the dot com bubble and manage to trade as high as $500 a share. At one point, Yahoo's search engine was the third most popular.
The sale of Yahoo to Verizon will not include Yahoo's cash. Nor will it include its shares in Alibaba Group holdings, Yahoo Japan, Yahoo's convertible notes, or its non core patents. Those Yahoo assets will be brought together as a new publicly traded company under a new name. The sale of Yahoo to Verizon must still be approved by federal regulators, but both companies feel confident that the sale will close some time in early 2017.
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