Report: Verizon to acquire Yahoo in $5 billion deal

Verizon, a broadband telecommunications company is reportedly set towards an agreement to acquire Yahoo for $5 billion, according to a person close to the situation.

The news is expected Monday, before the start of New York trading hours, said the source.

The anticipated deal will end months of Yahoo's uncertainty towards its future. The company, which was a popular destination for internet users worldwide, lost its luster over time, which forced it to put itself up for sale.

Yahoo and Verizon both did not issue any official statements about the expected acquisition.

Verizon emerged as the frontrunner in the auction for Yahoo's business, according to Reuters, since it began in April. Other companies were also reputedly interested with the company. Microsoft, for one, back in 2008, was interested in purchasing the company's core business. The Redmond giant was also rumored to be backing bids from other firms in purchasing Yahoo. Moreover, unnamed sources stated that Google was also considering making bids, while Time was seen evaluating its options with Yahoo.

Should the transaction go through, it would mark the end for Yahoo as an operating company. It will, however, leave the company as the owner of a 35.5 percent stake in Yahoo Japan, as well as its 15 percent interest in Chinese e-commerce company Alibaba. It will also mark the end of the reign of Marissa Mayer, who took over as Yahoo's CEO back in 2012.

On Verizon's side, the acquisition would give it access to Yahoo's advertising technology tools, including other services like search, mail, messenger, and real estate. It would also help boost its AOL internet business, which the company acquired last year for $4.4 billion.

Source: Reuters

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