Yahoo, Inc. will be acquired by Verizon Communications, Inc., the largest telecommunications company in the U.S. The sale is priced at $5 billion.
The California-based technology company has been suffering the past years. It's CEO, Marissa Myers attempted to resuscitate Yahoo as an independent company but failed.
Verizon is also the largest wireless carrier in America. Once the sale is finalized, subscribers will have more ease of access in the internet.
The CEO of Yahoo also conceded to shareholders' pressure to have the company bought by another investor. The sentiment arose because of the failure of Yahoo's bid with Alibaba, the largest e-commerce platform in China.
Only Verizon can maximize these assets and has won. This is according to Roger Entner, an analyst with Recon Analytics LLC. He said, "No one could get more out of Yahoo's businesses than Verizon."
"This will expand Verizon's advertising base by 200 million more visitors," Entner said. "This will be a large driver of the advertising engine. They also can collect a whole lot more user data to make the ads more relevant. They will be in more places with better ads."
Yahoo has tried to get bidders in the past months. Other bidders who were actively seeking closure were AT&T Inc., Quicken Loans Inc., Vector Capital Management and TPG.
Verizon has been acquiring internet companies and advertising technology companies. Recently, the company bought AOL. In terms of mobile advertising, Verizon is the best to take on Google, Inc, and Facebook, Inc.
Verizon is gearing up to be a giant in online and mobile advertising with the acquisition of Yahoo. This year, the company earned $1.33 billion in ad revenue. Yahoo had a profit amounting to $3.28 billion. The giant is still Google who earned $53 billion.