Verizon: Yahoo sold its core business – ZEIT ONLINE

The Internet company Yahoo sold its core business to the US telecom company Verizon, which it will pay $ 4.8 billion. According to Verizon CEO Lowell McAdam Yahoo will be merged with the subsidiary AOL. McAdam expects as a “major global Mobile Media Company” that can compete with Google and Facebook in particular in the field of online advertising.

The sale marks the end of independence for one of the most famous companies in the Internet economy. Yahoo was founded more than 20 years ago as a directory of websites. In 2000 it had a market capitalization of $ 100 billion.

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The company lies now in crisis. The problem of the former Web pioneer: Although use hundreds of millions of people of the group, such as e-mail services. However, Yahoo teamed up for years very difficult, translating those use in revenue. The money is made primarily with online advertising – a business in which Yahoo has become increasingly disconnected from Google and Facebook.
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article__item"> Several chiefs tried unsuccessfully Yahoo back on track. Recently the former Google manager Marissa Mayer had four years to do so. She sat on an expansion of the media supply, has invested heavily in Web search and bought the blog platform Tumblr for about one billion dollars, to attract so again young users. But even so they celebrated any successes that revenue from Yahoo fell alone in the last quarter by about a fifth.

In December the company decided under pressure from shareholders to outsource its ailing core business of search engine and online advertising and looking for an investor for it. Verizon for some time was already considered a favorite. In addition, Yahoo still has a multibillion-dollar stake in China’s Alibaba online platform. Together with Yahoo Japan, these two companies are to remain in the old Yahoo Society.