The curtains have finally come down on Yahoo, a company that has tried so hard to stay afloat in the online market.
Telecoms firm Verizon Communications has acquired Yahoo, a company that was formed two decades ago for $4.83 billion. The company’s dwindling profits for the past eight years prompted shareholders to call on Yahoo Inc. to let go of the entity. The deal however does not include the company’s stake in Chinese firm Alibaba and Yahoo Japan.
Yahoo which boasts of its email service, news websites and advertising was once a giant internet company but failed to maintain its dominant state after the entry of Google and Facebook. Some analysts attribute Yahoo’s dwindling revenue on the company’s lackluster attitude towards social media at a time the likes of Google and Facebook embraced the new online market. In 2015 Yahoo made a net loss of $4.4 billion.
Yahoo is the second company Verizon has acquired after another fallen “giant” AOL last year. Verizon chief executive Lowell McAdam said the two brands will be integrated into its recently acquired AOL unit to create a top mobile media company.
Verizon takeover of Yahoo will be finalized in 2017.
Yahoo which stands for Yet Another Hierarchically Organized Oracle was founded in 1994.